Charitable Gift Annuities

Of all the life-income gifts, the charitable gift annuity may be the simplest and most economical to complete. A charitable gift annuity is a contract between Sarah Lawrence and a donor specifying that in return for a gift of cash or marketable securities, the College will provide the donor and/or another beneficiary, fixed payments for life. The payment rate is based on the age of the beneficiaries at the time the gift is established.

Gift annuities enable you to:

• Receive a fixed and dependable income for life
• Take a sizable charitable income tax deduction for the year the gift is funded
• Initially bypass and reduce capital gain tax if funded with appreciated securities
• Remove the assets used to fund the gift from your estate for tax purposes

Example

Margaret Brody, age 72, is planning a gift to Sarah Lawrence for her 50th reunion, but wants to retain income for herself and her husband, Bill, age 76. By funding a gift annuity with $100,000 of low-yielding, appreciated stock that she purchased for $20,000 nearly twenty years ago, she can achieve the following:

• Earn a yearly income of $5,500 based on an annual payment rate of 5.5%*
• Receive a $27,793** charitable income tax deduction
• Spread capital gain of $57,765 out over her life expectancy of 14.5 years
• Remove $100,000 from her estate that could otherwise be subject to tax
• Make a substantial gift to the College in honor of her class reunion

*American Council on Gift Annuities recommended rates as of 2/1/09
** Based on a discount rate of 2%