Higher Charitable Gift Annuity Rates
Increase your retirement income and shape the University of Minnesota Morris’s future with a charitable gift annuity. Good news: the gift annuity rates are now the highest they’ve been in years.
How It Works
With a charitable gift annuity, you make a donation using cash, marketable securities or other assets, and we, in turn, pay you a fixed amount for life. With this gift you can boost your retirement income and feel secure because you receive reliable, predictable payments for as long as you live.
It’s a great time to contact Susan Schmidgall, CDO at 320-589-6160 or sschmidg@morris.umn.edu for a personalized illustration at no obligation.
Here’s an Example
Barbara, 72, transfers $25,000 in exchange for a charitable gift annuity.
With the old rates: Barbara received annual payments of $1,350, a rate of 5.4 percent.
With the new rates: Barbara receives annual payments of $1,450, a rate of 5.8 percent. This is a payout rate increase of approximately 7.4 percent.
| New Rate Charts (effective July 1, 2018) | |||||
| One Recipient | Two Recipients | ||||
| Age | NEW RATE | Old Rate | Rate | NEW RATE | Old Rate |
| 60 | 4.7% | 4.4% | 60/65 | 4.3% | 4.0% |
| 65 | 5.1% | 4.7% | 65/70 | 4.7% | 4.4% |
| 70 | 5.6% | 5.1% | 70/75 | 5.2% | 4.8% |
| 75 | 6.2% | 5.8% | 75/80 | 5.7% | 5.3% |
| 80 | 7.3% | 6.8% | 80/85 | 6.6% | 6.1% |
| 85 | 8.3% | 7.8% | 85/90 | 8.0% | 7.3% |
| 90+ | 9.5% | 9.0% | 90/95+ | 9.3% | 8.8% |
Additional Benefits
- A partial income tax charitable deduction for your gift when you itemize.
- Part of each payment is income tax-free throughout your estimated life expectancy.
Tip: Consider Giving Appreciated Assets
Funding a gift annuity with appreciated assets, such as securities, will not only provide you with reliable payments for life and allow you to support UMN Morris’s work, but it can offer financial benefits. You will receive a federal income tax charitable deduction (when you itemize) in the year the gift is made and eliminate part of the capital gains tax you would have paid if selling the securities.
Request Your Personalized Illustration
We would be happy to send you a free, no-obligation illustration showing you the increased benefits you can receive from a charitable gift annuity. Your personalized illustration will include your potential income tax charitable deduction and our annual payments to you for life. Contact Susan Schmidgall, CDO at 320-589-6160 or sschmidg@morris.umn.edu to begin.
Information contained herein was accurate at the time of posting. The information on this website is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. Figures cited in any examples are for illustrative purposes only. References to tax rates include federal taxes only and are subject to change. State law may further impact your individual results. California residents: Annuities are subject to regulation by the State of California. Payments under such agreements, however, are not protected or otherwise guaranteed by any government agency or the California Life and Health Insurance Guarantee Association. Oklahoma residents: A charitable gift annuity is not regulated by the Oklahoma Insurance Department and is not protected by a guaranty association affiliated with the Oklahoma Insurance Department. South Dakota residents: Charitable gift annuities are not regulated by and are not under the jurisdiction of the South Dakota Division of Insurance.