Charitable Gift Annuities

A charitable gift annuity is the most common type of life income gift made to Gettysburg College. In exchange for your irrevocable gift of cash or securities, Gettysburg College agrees to pay one or two annuitants a fixed sum each year for life. The payment rate is determined by the age(s) of income recipient(s). Each recipient must be at least 60 years old when payments begin. No additional contributions can be made to gift annuities, but additional annuities can be established to support the same or different purposes. The minimum gift required is $10,000. Donors of charitable gift annuities are entitled to an income tax deduction in the year of the gift. In most cases, part of each payment is tax-free, increasing each payment's after-tax value. If you give appreciated property, you will pay capital gains tax on only part of the appreciation. In addition, if you name yourself as primary annuitant, the capital gains tax will be spread out over your life expectancy.

Deferred gift annuities can be particularly attractive to younger donors, and can be a helpful tool in retirement planning. Payments must be delayed for at least a year after the gift is made and until all income recipients are at least 60 years old. The income tax deduction is still available for the year of the gift, and the rate of income is higher than for annuities that start payments immediately. Note that deductions for gifts are subject to a number of limitations depending on the nature of the property you contribute, your adjusted gross income, and other factors.

Gift annuities are governed by state law. Gettysburg College cannot offer Charitable Gift Annuities in all States. Please contact the Office of Planned Giving for more information. *Gettysburg College follows the rates suggested by the American Council on Gift Annuities, which go into effect on July 1 of each year.

Planning Tip: Your income tax deduction will be limited to 50% of your adjusted gross income when you fund your annuity with cash. For gifts of long-term appreciated property, the deduction will be limited to 30% of your adjusted gross income. If necessary, you may take unused deductions of either kind on your tax returns over the next five years, subject to the same 50% or 30% limitation.

Pennsylvania law and your resident state's law govern Gettysburg College annuities. The promise to pay the annuity is not insurance under the laws of Pennsylvania, and the annuity is not subject to regulation by the Insurance Department or protected by insurance law. A charitable gift annuity is not designed primarily as an investment but rather as a charitable gift.

Founded in 1832, Gettysburg College is a charity qualified under Pennsylvania law to issue charitable gift annuities. The College has adequate assets to back the annuities, and its financial statements may be obtained by writing the College Treasurer.