What kind of gift offers the greatest tax advantage for donors?
An outright gift offers the greatest tax advantage, as typically 100 percent of the gift is tax deductible. For planned gifts, in general, the greater the annual payout, the lower the deduction. Here are two examples. Assume a donor is 72 years old and donates $50,000. If the donor opted to contribute to the Samson Occom Pooled Fund (with a 3.5 percent payout rate), he or she would take a $32,263 deduction and would receive an annual payout of $1,750. If the donor selected a Charitable Gift Annuity (with a 6.7 percent payout rate), he or she would take a $21,178 deduction and receive an annual payout of $3,350. The possibilities depend on the donor’s circumstances and objectives. Please contact the Gift Planning Office at gift.planning@dartmouth.edu or call 800-451-4067 (toll free) for a personal review.
