Charitable Gift Annuities
What is a charitable gift annuity?
A charitable gift annuity is both a gift and an investment. It is among the oldest, simplest and most popular methods of making a deferred charitable gift. You contribute cash, marketable securities, or under special circumstances, real estate, to Wheaton in exchange for a contractual promise on behalf of the college to pay you, and if you wish, another annuitant, a guaranteed income for life.
The annuity rate depends on the age(s) of the beneficiary(ies) and is actuarially designed to result in a gift at least 50% of the value of the initial transfer. A portion of each annuity payment represents the tax-free return of your investment in the annuity and, if you transfer appreciated securities, you may report the capital gain associated with the value of the annuity ratable over a period equal to your life expectancy.
Is a charitable gift annuity right for you?
If you wish to receive maximum expendable income now, if you seek to defer capital gains taxes, or desire the security and predictability of a fixed income, and would like to benefit Wheaton, then a charitable gift annuity may be right for you. The minimum age for establishing a charitable gift annuity is 55 and the minimum gift is $10,000.
Benefits to you
- You are able to make a significant gift to Wheaton College.
- You are eligible to receive a charitable deduction for a portion of the gift.
- A portion of each annuity payment is treated as a return of the original investment and is received income tax-free over your life expectancy.
- The tax-free portion is greatest when the annuity is funded with cash.
- Any reportable capital gain from a gift of appreciated assets is spread out over your life expectancy at the time of the gift.
Gift Annuity Rate Table
| Age(s) | Gift | Annual Income | Charitable Deduction |
|---|---|---|---|
| 70 | $10,000 | $650.00 | $4,394.00 |
| 71/72 | $10,000 | $600.00 | $3,829.90 |
| 72 | $25,000 | $1,675.00 | $11,410.00 |
| 72/72 | $25,000 | $1,500.00 | $9,776.75 |
Based on rates in effect through November 30, 2006
This page is maintained by The Office of Gift Planning. Last updated on 9/27/06.
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