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Charitable Gift Annuity 

 CharitableGiftAnnuityInfographic

With a charitable gift annuity, you give Wofford an asset and in return the college agrees to pay you a fixed income for life. It is a simple contract between a donor and Wofford College.

 How It Works:

  • You agree to irrevocably give assets to the college
  • The college agrees to provide fixed payments to you (and/or another designee) for life 
  • Payments from charitable gift annuities vary based on a number of factors: the amount of the original gift, the age of the beneficiary(ies) and current payout rates (standard rates established by the American Council on Gift Annuities). See below for a couple of examples:
    •  John is 75 years old and has contributed $25,000 to a charitable gift annuity. Based upon his calculated lifeexpectancy, he will receive a 5.8 percent payout rate, which equates to $1,450 per year ($1,108 of which is tax free). In addition, he will be able to claim a charitable tax deduction of $11,257 when the annuity is established.
    • Mr. and Mrs. Smith are 65 and 68 years old, respectively, and have contributed $250,000 of appreciated stock to Wofford in order to create a charitable gift annuity. Based upon their combined life expectancy, they will receive a 4.3 percent payout rate or an annual payment of $10,750. They will be able to claim a charitable tax deduction of $68,720 and reduce their liability in capital gains tax.
  • Upon your death the remaining principal of the annuity becomes available for use by Wofford as you designated              

Assets Used:

  • Cash – If funded with cash, a significant portion of the annuity income will not be subject to Federal Income Tax.
  • Appreciated Property (such as stock, a home, land, etc.) – If funded with appreciated property, you can avoid a portion of the capital gains tax as well as getting an income tax deduction on the income payments.
      

Benefits: 

  • Guaranteed fixed payments for life of one or two individuals
  • Qualifies for a charitable tax deduction when the initial gift is made
  • A portion of the payment you receive from Wofford is considered tax-free income
  • Reduces capital gains tax if funded with appreciated property
  • Capital gains tax will be payable over your life expectancy (rather than the year of the gift)
  • You can choose to begin receiving payments immediately or delay the start to a date at least one year in the future.  You still receive the tax deduction now on the gift and the payments will be higher if deferred
  • Gift Annuities can be established with as little as $10,000
  • There are no fees for establishing or administering the plan
  • Satisfaction of knowing that the remaining principal will be used by Wofford for the purpose you initially designated.


You might be interested if...

...you want the security of fixed income during your life, but want to impact Wofford going forward.

 

 



  

Charitable Gift Annuity Application

>Click here to view the Charitable Gift Annuity application.

Example: