Charitable gift annuity rates increase for the first time since 2012

Boost your retirement income and support Exeter. It’s easy with new annuity rates launched July 1, 2018. 

July 1, 2018
table top with hands signing papers.

Ever wonder how you can support Exeter and get a retirement benefit that pays you income for the rest of your lifetime? Charitable gift annuities are one way to go. With the recent increase in annuity rates, this option is more attractive than ever. 

How it works

With a gift annuity, you make a gift to Exeter (minimum $10,000) and we pay you a fixed amount for life. You can expand the lifetime provision to include a spouse or other beneficiary (recipients must be over the age of 60). 

This simple concept gives you security for your lifetime, and also affords tax benefits:

  • Charitable tax deduction for the year in which you make the gift 
  • Part of each annuity payment is tax-free for your estimated life expectancy
  • Partial elimination of capital gains tax when you use appreciated assets to fund the annuity

Estimate your benefit

With the recently upgraded rates, here’s what you can expect as a payout from a charitable gift annuity.

One Recipient

Age

Rate

60

4.7%

65 5.1%
70

5.6%

75 6.2%
80 7.3%
85 8.3%
90+ 9.5%

Two Recipients

Ages Rate
60-65 4.3%
65-70 4.7%
70-75 5.2%
75-80 5.7%
80-85 6.6%
85-90 8.0%
90-95+ 9.3%

These rates represent the suggested maximum rate schedule of the American Council on Gift Annuities. The age of both recipients is a factor in determining the rate for a two-lives annuity. See the ACGA chart for more details and to research rates for ages different from the examples above. 

Start collecting today, or defer

Although many people choose to fund an annuity and start collecting immediately (you must be over 60 years old), you have the option of funding today and deferring payments for the future. Deferring affords tax savings in the year of your gift and an additional source of income when you retire. It can also potentially result in higher annuity rates and larger tax deductions. 

Read more about immediate gift annuities and deferred gift annuities.

How can it work for me?

Please contact Phil Perham (603-777-3594, pperham@exeter.edu) to get more information on Charitable Gift Annuity scenarios. 

Or check out our online annuity calculator.