Charitable Gift Annuity
Here's
how it works. An individual makes a gift of cash or property to Clarkson
College. In return, the College agrees to pay the donor (or a person of the
donor's choosing) a guaranteed annuity for life or another term. This annuity
is based on a fixed rate that is not market sensitive, therefore exempt from
market fluctuations. A portion of the annuity income is also tax free because
it is tied to a charitable donation. At the time of the donor's death, Clarkson
College maintains the gift assets.
Charitable Gift Annuity Offers Tax
Benefit
Consider
it a smart way to give. Charitable gift annuities are gaining in popularity. In
addition to generating tax-free income, Nebraska donors may also be eligible
for a state income tax credit of up to $5,000.
For
instance, a $10,000 charitable gift annuity made at age 70 and based on a rate
of 6.5 percent would generate an annual income of $650. The overall deduction
on the donor's federal income taxes would be $4,277.
Nebraska
residents can also enjoy an added advantage. The Nebraska Charitable Endowment
Tax Credit encourages planned gifts to qualified endowment like Clarkson
College by providing a dollar-for-dollar tax reduction up to $5,000 per
individual on their state income tax bill. This credit is only available for
two more years. It is scheduled to "sunset" January 1, 2010
The
Clarkson College Development Office offers personal consultations regarding the
establishment of a charitable gift annuity or other planned giving
opportunities. For more information, call 402.552.3394 or go to Planned Giving.
(Sources: Nebraska Department of
Revenue, Endow Nebraska)
Charitable Gift Annuity—based on a
$10,000 one-life annuity
|
Age
|
Annuity Rate
(American Council
on Gift Annuities)
|
Annual
Income
|
Tax-Free
Percentage
|
Tax-Free
Amount
|
Federal Income
Tax Deduction
(IRS Discount Rate
5.8%)
|
|
70
|
6.5%
|
$650
|
55%
|
$360
|
$4,277
|
|
75
|
7.1%
|
$710
|
59%
|
$419
|
$4,808
|
|
80
|
8.0%
|
$800
|
64%
|
$511
|
$5,193
|
|
85
|
9.5%
|
$950
|
71%
|
$675
|
$5,404
|
More Information
Return your completed form to this
address or contact the Development Office at:
Development
Office
4239
Farnam, Suite 326
Omaha, NE
68131
E-mail: jupright@nebraskamed.com
Phone: 402.552.3394
