Gift Annuity

Gift Annuities At Connecticut College

Gift Annuities are one of the most popular gift options at Connecticut College. A gift annuity is a contractual agreement wherein Connecticut College agrees to pay a guaranteed, specified amount annually to the donor and/or named beneficiaries for the rest of their lives. The payout rate depends on the age and number of beneficiaries listed. Depending on the age of the donor, an annuity can be set up as a deferred gift annuity or a standard gift annuity. All require a minimum $5,000 initial investment.

Advantages of Gift Annuities

In addition to the guaranteed income that the annuity offers, the donor receives a charitable deduction for a portion of the gift. The donor also avoids or postpones capital gain tax and may receive a large portion of the income payments in the tax-free return of principal. Gift annuity payments may begin immediately or be deferred. The deferred gift annuity may be attractive to donors 40 to 60 years old who have high current income and are looking for a tax deduction but also want to secure supplemental retirement income for the future.

Donors closer to retirement age, or already enjoying retirement, may choose to have annuity payments start immediately. These donors take advantage of higher rates of return on their investment, immediate income to themselves and/or their beneficiaries beneficiaries, tax savings and, most importantly, provide support of Connecticut College in future years.

Last Modified: Thursday, May 31, 2007 12:18