Charitable Gift Annuity
A gift annuity is a contract between a donor and Smith College that will provide a guaranteed, fixed income for the life of the donor or other designated beneficiary. The annuity assets are commingled with Smith's endowment and the program is backed by the total assets of the college. There are no management fees or investment worries. The minimum annuity gift is $10,000.
Eligibility
An annuitant must be at least 60 years of age in order to receive income from a charitable gift annuity. You may make your gift at a younger age, but must defer your income until at least age 60. By deferring, you would qualify for a higher rate. For more on deferred payment gift annuities, click here.
Annuities based on two lives are also available, but the rates are generally lower.
Tax Deductibility
Gift annuities generate an immediate charitable income tax deduction. Capital gains are reduced dramatically and can be reported over a number of years so that those taxes are not due all at one time.
Rates
Age |
Current Rates |
Age |
Current Rates |
||
|---|---|---|---|---|---|
60 |
4.4% |
76 |
6.0% |
||
61 |
4.4% |
77 |
6.2% |
||
62 |
4.5% |
78 |
6.4% |
||
63 |
4.5% |
79 |
6.6% |
||
64 |
4.6% |
80 |
6.8% |
||
65 |
4.7% |
81 |
7.0% |
||
66 |
4.8% |
82 |
7.2% |
||
67 |
4.8% |
83 |
7.4% |
||
68 |
4.9% |
84 |
7.6% |
||
69 |
5.0% |
85 |
7.8% |
||
70 |
5.1% |
86 |
8.0% |
||
71 |
5.3% |
87 |
8.2% |
||
72 |
5.4% |
88 |
8.4% |
||
73 |
5.5% |
89 |
8.7% |
||
74 |
5.7% |
90+ |
9.0% |
||
75 |
5.8% |
*Contact the Office of Planned Gifts & Bequests for more detailed information. When prevailing interest rates are low, some rates displayed here may need to be adjusted downward in order to qualify you for a tax deduction that complies with IRS regulations.
Charitable Gift Annuity Rates
Smith College's charitable gift annuity rates are based on the recommendations of the American Council on Gift Annuities (ACGA), a national nonprofit organization that uses detailed actuarial calculations and investment return expectations to publish suggested annuity rates for charities. Smith's chief financial officer adapts the ACGA recommendations to best suit the needs of the college and its donors.
Patricia '71 has worked hard and is doing well as a partner in a big city law firm. She attended Smith College on scholarship. Now that she has a steady income, she'd like to give back in two ways: provide income for her aging mother and donate scholarship funds to Smith.
The solution: a charitable gift annuity funded by Patricia, with income directed to her mother. The annuity rate is determined by the mother's age. Patricia can claim a charitable tax deduction in the year she funds the gift, which is helpful as she is in a high income tax bracket. (Note: only a portion of the gift is deductible, since it is only partially charitable.)
Because Patricia has made a gift to her mother of the life income stream, there may be gift tax considerations. Smith helped Patricia determine what size gift would keep her gift tax obligation within her $11,000 annual gift tax exclusion. Patricia plans to make another similar gift to Smith next year, so her mother will receive income from two annuities.
