How are the Annuity Payments and Charitable Tax Deductions Determined?
Central Pennsylvania Conservancy follows the rate schedule established by the American Council on Gift Annuities. The amount of your gift and the number of annuitants affect the charitable deduction and annuity amount. Age also is a factor: the older you are when you make the gift, the higher the deduction and annual rate of return. We recommend establishing a charitable gift annuity after you reach age 60. Example: Robert S., age 73, transfers $50,000 to Central Pennsylvania Conservancy for a charitable gift annuity to support land acquisition. In exchange, Central Pennsylvania Conservancy pays him 6.8% ($3,400) annually, of which $2,186 is tax-free for 13 years. He also receives a charitable tax deduction of $19,816 in the year that he makes his gift. After his lifetime, Central Pennsylvania Conservancy can use his gift for important land protection. Can annuity payments be deferred if income is not currently needed? Yes, And the longer the deferral period, the greater the payout and
Related Questions
- If I set up a charitable gift annuity with the Center, what financial provisions are made to ensure the income payments will be made for the rest of my life?
- Im interested in establishing a charitable gift annuity. What financial provisions will you make for the annunity payments to me and my spouse?
- Who can receive payments from a charitable gift annuity?
