For the first time in years, the charitable gift annuity rates suggested by the American Council on Gift Annuities increased on July 1, 2018.
A charitable gift annuity is a simple way for you to make a gift with some attractive benefits. You make a gift of cash or publicly traded securities, and in exchange the Texas A&M Foundation agrees to pay you and a friend or family member a fixed amount annually for life, with the payments guaranteed by the Foundation. At the end of the gift annuity, the remaining assets support the college, program, or scholarship you designate.
Creating a charitable gift annuity
- The minimum gift is $10,000, and the minimum age when payments may begin is 55.
- Gift annuities may be funded with cash or securities.
- You may receive an immediate income tax deduction for a portion of the gift.
- Once the gift annuity is established, it pays a fixed sum annually to one or two people for life based on the amount of the gift and your ages at the time the annuity begins. Payments can be made monthly, quarterly, semi-annually or annually.
- A charitable gift annuity agreement is irrevocable.
Note: Gift annuities also may be established for others as a lifetime gift or as a testamentary gift through a will or living trust.
Benefits of a gift annuity
- You and/or your designee(s) will receive fixed payments for life at attractive payout rates.
- A portion of your charitable gift may be tax-deductible.
- A portion of your annual payments will be tax-free.
- If you donate long-term appreciated securities, you may get capital gains tax savings.
- Gifts can be designated to the college, department or scholarship program of your choice, or where the need is greatest at Texas A&M University.
Deferred charitable gift annuity
If you do not need additional income immediately or would like to set up an annuity for a younger person, you may consider a deferred payment gift annuity. Because payments do not begin until a minimum deferral period of at least one year, a deferred gift annuity offers higher payment rates and typically a greater tax deduction than an immediate payment charitable gift annuity.
