Charitable gift annuities are one of the most popular planned gift options at Carleton. Gift annuities can provide you with a guaranteed fixed income for your lifetime as well as significant tax benefits. In an uncertain economy, the stability of a charitable gift annuity is very attractive.

Here's how a charitable gift annuity works:

• The suggested minimum for establishing a gift annuity is $10,000.
• The donor receives a fixed guaranteed income for life.
• The payout rate is determined by the age of the annuitant. For example:
  • 6.3% for an individual, age 72
  • 5.8% for a couple, both age 72

• The donor receives a charitable income tax deduction ranging from about 25% to 40% of the gift amount.
• Assets commonly used to fund gift annuities include:
  • Cash
  • Stock (publicly traded)
  • Mutual Fund shares
• Special strategy considerations:
  • Guaranteed, stable income
  • Excellent way to increase income from appreciated assets
  • Easy to set up and manage
  • Reduces income tax and capital gains tax
• Planning tips:
  • If income is not needed now, a donor can fund a gift annuity today, but specify a future date for payments to begin.
  • The longer the first income payment is deferred, the higher the income and tax deduction will be.

For more information

To learn more about charitable gift annuities, or to see an illustration tailored to your specific circumstances, please contact our Office of Major and Planned Giving.