We have some exciting news that can boost your retirement income and support Bowdoin College. The American Council on Gift Annuities has announced that charitable gift annuity rates will increase effective July 1, 2018 and Bowdoin College has decided to honor these new rates immediately.
How It Works
The concept is simple. With a charitable gift annuity, you make a gift using cash or marketable securities, and we, in turn, pay you a fixed amount for life. With this type of gift, you can feel secure knowing you can count on receiving stable payments for as long as you live. If you make your gift now, we will honor the new ACGA rates that take effect on July 1. The ACGA has not raised gift annuity rates since 2012. The new rates are higher than the previous rates and are based on your age at the time of the gift.
Now is the time to contact the Office of Gift Planning at 207-725-3172 or firstname.lastname@example.org to begin planning your gift!
Here's an Example of How You May Benefit
Prior to the new ACGA rate increase, if Mary, 79 years old, established a one-life, $25,000 charitable gift annuity, the annuity rate would be 6.6 percent and Mary would receive annual payments of $1,650. Under the new ACGA rates—which Bowdoin will honor immediately—Mary's rate is 7.1 percent and her annual annuity payment is $1,775. This is a payout rate increase of approximately 7.5 percent.
|New Rate Charts (effective July 1, 2018)|
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Beyond increasing your retirement income as you help shape Bowdoin's future, gift annuities offer you tax benefits, including:
- A partial income tax charitable deduction now 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 Bowdoin, but it can offer financial benefits. You will receive an available federal income tax charitable deduction (if you itemize) in the year the gift is made and eliminate part of the capital gains tax you would have paid if you sold the securities.
We Can Help
We would be happy to send you an illustration showing you the benefits you can receive from a charitable gift annuity. Your personalized illustration will include your potential income tax charitable deduction and the amount of your annual payments for life. Contact the Office of Gift Planning at 207-725-3172 or email@example.com to obtain your illustration.