Text Size

Charitable Gift Annuity

One of the easiest and most popular ways to make a planned gift to Penn State, a charitable gift annuity provides you with income for the rest of your life. When you make a gift of $10,000 or more to Penn State to establish a charitable gift annuity, Penn State promises to pay you (or up to two people) an income at a fixed annual rate. This rate, based on your age(s), is established at the time of your gift and never changes. Your income from this gift is guaranteed for life.

At your death, Penn State receives the remainder of the annuity and applies the funds to the program you specified at the time of your gift.

Deferred Charitable Gift Annuity

A variation of the charitable gift annuity, this giving option is ideal for younger donors. With a minimum gift of $5,000, you can begin funding a deferred gift annuity at age 35. Income payments are delayed for a minimum of one year and cannot begin before age 60. The rate of the future annuity payment is established at the time of your gift, based on your age(s) and the deferral period before payments begin.

Benefits of establishing a charitable gift annuity include:

  • Receiving an immediate income tax deduction and potential eliminations of gift and estate taxes.
  • Avoiding or reducing capital gains tax if appreciated property is used to make a gift.
  • Designating how the remainder of your gift will benefit Penn State.

 

To learn more about how you can establish a charitable gift annuity, download our Charitable Gift Annuity fact sheet and other publications.

Penn State’s Office of Gift Planning will confidentially answer your questions about giving and work closely with your legal, tax, and other advisers to come up with an integrated plan that meets each of your personal goals. Please contact us anytime or click here to learn more.