charitable gift annuities
A charitable gift annuity is a contract between you and Boston College. The contract states that in exchange for your gift to BC, the University agrees to pay you, and/or another beneficiary, a fixed dollar amount annually for life.
Part of the payment to you and your beneficiary(ies) may be tax-free, or taxed at the more favorable capital gains tax rate, depending on the asset you select to fund the annuity. The annual payment amount is based on the age of the income beneficiary(ies) at the time of the gift. At the death of the last income beneficiary, Boston College will then use the principal in accordance with the terms you have established for your gift.
An annuity can be established with a minimum gift of $25,000 and is most appropriate for older beneficiaries who are looking for a fixed annuity payment and who have other assets that can be expected to grow and serve as a hedge against inflation. This is due to the effect that inflation can have on the purchasing power of fixed annuity payments over a long period of time.
Meet Eugene Sullivan '53 and Rosemary Sullivan, donors of a charitable gift annuity.
Charitable Deferred Gift Annuity
For many people, the nature of a fixed payment of a charitable gift annuity is very attractive; however, they prefer not to receive the payment immediately. For these donors the deferred gift annuity may be a viable option. A deferred gift annuity allows the donor to make a gift now while setting a predetermined date in the future to begin receiving the annuity. By deferring your payment for a year or more, the donor will be offered a higher gift annuity rate and a higher tax deduction.
For more information on charitable gift annuities, please contact the Office of Gift Planning.
Summary of benefits:
- Satisfaction in supporting an area of Boston College that is important to you.
- Fixed lifetime payments for up to two beneficiaries.
- An immediate charitable income tax deduction.
- Relief from upfront capital gains taxes on gifts of long-term appreciated property.
- Reduction in federal estate taxes.
- Membership in the Shaw Society.
For more information, please contact the Office of Gift Planning.
The information on this site is not intended as legal, tax, or investment advice. For such advice, please consult an attorney or a tax or investment professional.