A gift annuity is a very simple method of receiving income payments from a major gift to charity. Baldwin-Wallace College offers gift annuities through its self-managed program.
In order to obtain a gift annuity, a donor completes the following steps:
|
Information obtained from the donor provides the basis for the annuity contract. Essentially, that information is the name or names of the annuitants and their date(s) of birth.
A gift annuity is designed to provide a payment of 50% of the initial value of the gift. In other words, one can expect to receive, as income, about 50% of the value of the gift paid over the donor’s life expectancy.
There are additional financial benefits to a gift annuity. First, a donor receives an income tax deduction for a portion of the donated value. In the example below, the tax deduction would be about $33,768. Also, if the gift consisted of appreciated property, such as stock, a portion of the tax on the gain is eliminated. Finally, part of the income payment received by the donor is tax-free.
To illustrate:
|
AGE |
RATE |
GIFT |
CHARITABLE DEDUCTION |
FIXED INCOME FOR LIFE |
|
68 |
6.30% |
$100,000 |
$33,768 |
$6,300 |
(Effective 04/21/08)
To calculate how a gift annuity can help supplement your income, try our online calculation software, GiftCalcs.
For additional information about gift annuities, please contact one of our staff at (440) 826-2136.
Tom Konkoly tkonkoly@bw.edu
Mike Walczak mwalczak@bw.edu
Marylou Hunter mhunter@bw.edu
275 Eastland Rd.