What Is A Charitable Gift Annuity?

A charitable gift annuity is a simple contract between you and the institution that benefits Salus University or one of its colleges.

In exchange for your irrevocable gift of cash, securities, or other assets, the institution agrees to pay one or two annuitants, you name, a fixed sum each year for life. The older your designated annuitants are at the time of the gift, the greater the fixed income you can receive. In most cases, part of each payment is tax-free, increasing each payment's after-tax value.

Payments may be made annually, semiannually, or quarterly.

Example: If you irrevocably transfer $50,000 in cash in exchange for a $3,850 annuity for an annuitant, age 72.

Your Benefits Include:

  • You will qualify for a federal income tax deduction of approximately $18,685. Your deduction may vary modestly depending on the timing of your gift. Note that deductions for this and other gifts of cash and non-appreciated property will be limited to 50% of your adjusted gross income. You may, if necessary, take unused deductions of this kind on tax returns over the next 5 years, subject to the same 50% limitation.
  • Your designated annuitant will receive fixed payments, in quarterly installments, totaling $3,450 each year for life. In addition, $2,159 of each year's payments will be tax-free for the first 14.5 years.
  • Your estate may enjoy reduced probate costs and estate taxes.
  • You will provide generous support for Salus University or one of its Colleges.

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