A Charitable Gift Annuity is a simple contract between you and Presbyterian College. In exchange for a gift of cash, securities, or other assets, PC agrees to pay one or two beneficiaries a guaranteed fixed income each year for life. A gift annuity will also provide you with a current federal income tax deduction as well as possible estate tax savings.
The older the designated beneficiaries are at the time of the gift, the greater the fixed income Presbyterian College can agree to pay. Rates are established by the American Council of Gift Annuities. In most cases, part of each payment is tax-free, increasing each payment’s after-tax value. If you give appreciated property, the capital gains tax liability can be spread out over time rather than due in the year of your gift. Payments are usually made in quarterly installments.
And there are several benefits for you:
1. Part of the contribution will qualify for a federal income tax charitable deduction. Note that deductions for gifts of long-term appreciated property will be limited to 30% of your adjusted gross income and gifts of cash and non-appreciated property will be limited to 50% of your adjusted gross income. You may, if necessary, take unused deductions of either kind over the next five years, subject to the same 30% or 50% limitation.
2. The beneficiaries you name will receive fixed annual income for life.
3. If you fund the annuity with an appreciated asset, you will incur tax on only part of the gain. If you name yourself as an annuitant, this tax can be spread out over many years.
4. Your estate may enjoy reduced estate taxes.
5. You will provide generous support to Presbyterian College.
*As with any financial decision, you should consult your CPA, attorney, and other financial advisors.
For more information, please contact:
Ann Casey – Director of Advancement Services
Office: 864.833.8007 | firstname.lastname@example.org