Charitable Gift Annuity             A charitable gift annuity is an agreement (a contract) between a donor and MORF. Under the

terms of a gift annuity agreement, MORF agrees to pay a fixed lifetime annuity in exchange             for the donor's charitable gift. The donor also receives a current income tax deduction for

part of the gift's value. The gift annuity payments are not insured by any government agency             but are backed by all of the assets of MORF.             For example, Vicki Joints, age 70, donates $50,000 cash to MORF for a gift annuity that             will provide a fixed lifelong payment to her and thereafter to her husband, who is also age             70. They will receive annual payments of $3,250 for life. Of this amount, $1,560 is tax–free             income for several years. Vicki’s current income tax deduction is $18,023.             Deferred Gift Annuity             Charitable gift annuities may also be structured to defer income until a future date. Deferred             gift annuities are considered by many to be an excellent retirement planning vehicle. By             deferring the income for one or more years, the donor receives a larger current charitable             deduction and a higher payout when the payments begin (as opposed to a current gift             annuity).             For example, George Boomer, age 50, makes a gift of $50,000 of stock to fund a deferred             payment gift annuity. At age 65, he will begin receiving annual payments of $7,650, which             is an effective 15.3% return. He is able to claim a current income tax deduction of $28,905.             Charitable Remainder Trust             You create a trust, and income from the trust goes to the beneficiaries you specify.             Beneficiaries receive income for life or for a specified number of years, and, at the end of             the trust term, the assets of the trust pass to MORF.             For example, John Fibula, 58, is grateful for the fine care he received from Dr. Kyle. He             decides to create a charitable remainder trust both to reduce taxes and support Dr. Kyle’s             research. John owns securities that originally cost $50,000 and are now worth $100,000.             He donates these securities to a charitable remainder trust and names MORF as trustee.             John chooses to receive annual payments of 5% of the value of the trust (paid quarterly).             The first year, Johns receives $2,500. However, the trust assets are revalued annually and             the payments will change and may grow over time. He receives an immediate income             tax deduction of approximately $20,700, and avoids paying the capital gain tax on the             appreciated securities when the trust is created. When John dies MORF is able to use the             trust principal to fund orthopaedic research.             Pooled Income Funds             These funds pool gifts (cash and securities) from donors for investment purposes, and             beneficiaries receive a proportionate share of the net income earned by the fund for life.             The Foundation receives the principal value at the death of the beneficiaries.