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Charitable Gift Annuities: Gifts That Pay You Income for Life

You may be able to support WHOI's mission, get a tax reduction and increase your income with one gift!

A charitable gift annuity is a contract in which the Institution agrees to make payments to you for life in exchange for a lump-sum gift of cash, stock or property. The gift will trigger an immediate income tax deduction, and in most cases, a portion of the income provided will be tax-free. The annuity may cover one or two people. The percentage payout is based on your age when you make the gift. Rates are higher for older donors (see below). If you fund the annuity with appreciated stock, you can minimize your capital gains tax liability to receive more income than the stock dividend had provided.

For example:
A 72-year old who funds a CGA for herself with $10,000 in cash would receive $580 per year for the rest of her life. The gift would generate an immediate tax deduction of $4,255 and, for the first 14 years, almost seventy percent of the income would be tax-free.

One-Income Beneficiary

Age Annuity Rate
65 4.7%
70 5.1%
75 5.8%
80 6.9%
85 8.0%
90 9.0%

Two-Income Beneficiaries

Age Annuity Rate
67/65 4.3%
70/68 4.5%
75/70 4.8%
80/75 5.3%
80/80 5.8%
85/80 6.2%

A deferral of income offers a higher annuity rate and a higher charitable deduction.

To see how this may fit into your philanthropic plans,  please try our planned giving calculator.

For more information, please contact Jim Flynn, Director of Major Gifts and Planned Giving at (508) 289-2018 or jflynn@whoi.edu.