Charitable Gift Annuities

Charitable Gift Annuities


Would you like to make a gift to Emma Willard and at the same time ensure reliable income for the rest of your life and receive a large current tax deduction?

If so, consider establishing a Charitable Gift Annuity (CGA) with Emma Willard School.

In exchange for a gift of cash or publicly traded stock in the amount of $10,000 or more, Emma Willard agrees to make fixed payments to you and/or another beneficiary for life. Rates are based on age (minimum age is 60) and a portion of the annuity payment is tax-free. The annuity remainder can be designated by you for a specific purpose at Emma Willard or can be applied by the School to an area of greatest need.

The following table shows the rates set by the American Council on Gift Annuities:
 
           
SINGLE LIFE
AGE FIXED PAYMENT RATE
60 4.7%
65 5.1%
70 5.6%
75 6.2%
80 7.3%
85 8.3%
90 9.5%
  
TWO LIVES
AGE FIXED PAYMENT RATE
60/60 4.1%
65/65 4.5%
70/70 5.0%
75/75 5.5%
80/80 6.2%
85/85 7.3%
90/90 9.1%
 
Example: Ruth, a 70-year-old alumna, contributes $50,000 toward a charitable gift annuity. She will receive $2,800 annually for her lifetime, of which $1,882 is tax-free for the first 16 years. Thereafter the entire annuity payment is subject to income tax. In addition, Ruth receives a charitable income tax deduction of $20,080. If she can’t fully use the deduction in the current year, it is available to be used over the next five years.
 
DEFERRED GIFT ANNUITY
For donors under the age of 60, or older donors who don’t need immediate income, but would like to provide for increased income at a later date, such as retirement, a Deferred Gift Annuity (DGA) allows the donor to enter into the DGA today, receive a charitable income tax deduction this year, but defer the start of the annuity payments to a future date the donor selects. Because of the deferral, the charitable income tax deduction is larger, and the annual payment will be higher than with a current gift annuity.
 

Contact us

If you have any questions about charitable gift annuities or would like to see an illustration of the specific benefits to you, please contact Jack Sise, Director of Gift Planning, at jsise@emmawillard.org or by phone.

The information presented on these web pages is not offered as legal or tax advice. You are urged to seek the advice of your tax advisor, attorney, and/or financial planner to make certain any gift you are considering fits well in your specific circumstances.


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