Charitable Gift Annuity
A charitable gift annuity is a legal contract under which the donor, in exchange for his or her irrevocable gift to the Georgia Tech Foundation, receives fixed payments for life. Annuity payments are based on the initial market value of the assets contributed and the age of the income beneficiaries.
Some of the benefits to the donor include:
- A portion of the annuity payment may be considered a tax-free return of principal.
- An income-tax deduction is allowed for the difference between the value of the gift and the present value of the annuity.
- By funding a gift annuity with appreciated securities, part of the appreciation escapes capital-gain taxation entirely, and the portion of capital gain that is reportable may be spread out over the donor's life expectancy.
Annuity payments are made to income beneficiaries who are 65 years or older. If you are interested in funding a charitable gift annuity but you are not yet 65, you can defer the payments until after your 65th birthday. The longer the deferral period, the higher your annuity rate.
Flexible-annuity planning option—You could add a provision to the agreement that allows you to delay receipt of payments. Postponing the beginning date of your payments will increase the amount of your payments when you do begin to receive them.
*Note: Charitable gift annuties may not be available in all states. Contact us for more information.
- What does a gift annuity contract look like? (17K .pdf)
- What would be my annuity rate if I funded a charitable gift annuity?
- Click here to see current CGA rates
Kaspick & Company
Kaspick & Company specializes in planned-gift asset management and administration. Kaspick & Company manages all charitable gift annuities funded with the Georgia Tech Foundation, and all trusts of which the Foundation is named trustee.
Kaspick & Company has detailed information on trusts, including investment allocation, funding assets, how to choose a trustee, and much more. Click here to learn more about management of planned gifts by Georgia Tech Foundation.
Please note: The federal estate tax is currently back in effect through the end of 2012. The top tax rate is now 35%, and the exclusion amount is $5,120,000 per person and $10,240,000 per married couple. Any exclusion amount not used by a spouse who dies after December 31, 2010, is portable and generally may be used by the surviving spouse. It is very important that you seek the advice of your estate-planning attorney to determine what changes, if any, need to be made to your existing estate plans.