A gift annuity is a contract between you and Bay Path College that provides a significant tax benefit in the year the gift is made as well as a guaranteed, fixed income. The College would pay the income recipient (yourself, you and your spouse, or another loved one) a guaranteed lifetime income based on the amount of the gift and the payout rate in effect for the age(s) of the income beneficiaries. The annuity assets are commingled with Bay Path’s endowment, and the program is backed by the total assets of the College. There are no management fees or investment worries. The minimum annuity gift is $10,000.
An annuitant must be 60 years of age at the date of the agreement. Rates offered are based on the annuitant’s age at the time of the gift. Payments are made quarterly, and a substantial portion of each payment is received tax free.
Gift annuities generate an immediate charitable income tax deduction. Capital gains are reduced dramatically and can be reported over a number of years so that those taxes are not due all at one time.
Please check with your financial advisor if you have specific questions about charitable annuities and its income tax implications.