There’s a way for you to support Broward College and feel confident that you have dependable income in your retirement years. You can do this with a charitable gift annuity. One gift allows you to support Broward College’s mission while receiving fixed payments for life for yourself, you and your spouse, or someone else.
Not only can you advance the mission of Broward College, but you can also qualify for a variety of tax benefits. The payout percentage is based on age, so the older you or your designee(s) is, the greater the annual payments. A gift annuity provides other benefits, too—there are possible capital gains tax savings if funded with appreciated assets and a portion of your annual payment could be tax-free. You will have an immediate income tax charitable deduction available to you in the year you create the gift annuity.
Charitable gift annuities are open to anyone. They are great for donors who have an existing endowment for either scholarship or program funds at Broward College. At the time of the last recipient’s death, the remaining funds in your charitable gift annuity would be distributed to enhance your endowed fund.
Each type of annuity comes with its own age-related rules. You must be at least 70 to receive payments from a current or deferred gift annuity, and at least 60 years old to create a deferred gift annuity. Additionally, a minimum gift of $10,000 is required for a charitable gift annuity.
Virginia, 88, wants to make an contribution to Broward College but also wants to ensure that she has income. She funds a $10,000 charitable gift annuity with a cash gift of $10,000.
Based on Virginia’s age, she will receive a payment rate of 8.7%, which means that she will receive $870 each year for the remainder of her life. Virginia is also eligible for a federal income tax charitable deduction of $6,194* when she itemizes on her tax return. Virginia knows that after her lifetime, the value of her endowment will grow, as the remaining amount of the Charitable Gift Annuity will increase the dollar amount of the endowment. Virginia’s legacy will live on through the impact that her endowment makes on students’ lives.
*Deductions and calculations will vary depending on your personal circumstances.