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The Manchester
College Charitable Gift Annuity (CGA for short) is a planning tool that,
at its heart, recognizes the fact that the rewards of giving begin with
the desire to make a gift to the College.
The Gift Annuity marks this decision with two things: the transfer of an
asset (minimum of $5,000) from the donor to Manchester College and the
signing of a contract in which the College agrees to make annual payments
to the donor for life.
In addition to the satisfaction inherent in the act of giving, the CGA
adds a tangible benefit in the form of an attractive annual
income payment. The specific payout rate is based on the age of
the donor.
This payout rate is declining on July 1.
The table below illustrates the changes.
|
Single Life Annuities |
|
Age |
Former Payout Rate |
New Payout Rate |
Net Change |
%
Change |
| 60 |
5.7% |
5.5% |
-0.2% |
-3.5% |
| 65 |
6.0% |
6.1% |
-0.3% |
-5.00% |
| 70 |
6.5% |
6.1% |
-0.4% |
-6.15% |
| 72 |
6.7% |
6.3% |
-0.4% |
-5.97% |
| 74 |
6.9% |
6.6% |
-0.3% |
-4.35% |
| 76 |
7.2% |
6.9% |
-0.3% |
-4.17% |
| 78 |
7.6% |
7.2% |
-0.4% |
-5.26% |
| 80 |
8.0% |
7.6% |
-0.4% |
-5.00% |
|
82 |
8.5% |
8.0% |
-0.5% |
-5.88% |
|
84 |
9.2% |
8.6% |
-0.6% |
-6.52% |
| 86 |
9.9% |
9.2% |
-0.7% |
-7.07% |
| 88 |
10.6% |
9.8% |
-0.8% |
-7.55% |
| 90+ |
11.3% |
10.5% |
-0.8% |
-7.08% |
|
Two-Life Annuities |
|
First Age |
Second Age |
Former Payout Rate |
New Payout Rate |
Net Change |
%
Change |
| 60 |
55 |
5.0% |
4.7% |
-0.3% |
-6.00% |
| 65 |
60 |
5.5% |
5.3% |
-0.2% |
-3.64% |
| 70 |
65 |
5.7% |
5.5% |
-0.2% |
-3.51% |
| 72 |
67 |
5.9% |
5.6% |
-0.3% |
-5.08% |
| 74 |
69 |
6.0% |
5.7% |
-0.3% |
-5.00% |
| 76 |
71 |
6.1% |
5.8% |
-0.3% |
-4.92% |
| 78 |
73 |
6.3% |
6.0% |
-0.3% |
-4.76% |
| 80 |
75 |
6.6% |
6.2% |
-0.4% |
-6.06% |
| 82 |
77 |
6.8% |
6.5% |
-0.3% |
-4.41% |
|
84 |
79 |
7.1% |
6.7% |
-0.4% |
-5.63% |
| 86 |
81 |
7.5% |
7.1% |
-0.4% |
-5.33% |
| 88 |
83 |
7.9% |
7.4% |
-0.5% |
-6.33% |
| 90+ |
85 |
8.4% |
7.9% |
-0.5% |
-5.95% |
Gift Annuities can be funded
with cash or securities. If securities that have appreciated in value
are used there are some especially impressive benefits:
-
There is an immediate
charitable deduction
-
A portion of the capital
gains tax is avoided
-
A portion of the income
to the donor is tax free
-
The income from the CGA
could be higher than the income from the stock
-
MC receives a gift when
the donor(s) pass away
The Office of College
Advancement has the ability to produce an easily understood illustration
of the tax benefits, the cash flow, and all the details of how a CGA
could work for you.
Because the payout rates
will decline July 1, it is important to start now! If you are
interested in a CGA, contact the
Office of
College Advancement for details. |
