New Charitable Gift Annuity Rates Coming
We have some exciting news that can help you boost your retirement income while supporting Northwestern. Effective July 1, 2018, charitable gift annuity rates will increase.
How It Works
The concept is simple. With a charitable gift annuity, you make a donation using cash, marketable securities or other assets, and Northwestern, in turn, pays 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 on or after July 1, the gift annuity rates will be an estimated 30 to 50 basis points higher than current rates based on your age at the time of the gift.
Contact Northwestern Gift Planning at 800-826-6709 or giftplanning@northwestern.edu to begin planning your gift.
Here is an Example of How You May Benefit
Under the current rate schedule, Mary, 79, transfers $25,000 in exchange for a charitable gift annuity. She will receive annual payments of $1,650, a rate of 6.6 percent. Instead, if Mary waits to make her gift on or after the new rate schedule is in place on July 1, the same gift amount will provide $1,775 in annual payments, reflecting a 7.1 percent rate. That is a payout rate increase of approximately 7.5 percent.
| New Rate Charts (effective July 1, 2018) | |||
| One Recipient | Two Recipients | ||
| Age | Rate | Ages | Rate |
| 60 | 4.7% | 60/65 | 4.3% |
| 65 | 5.1% | 65/70 | 4.7% |
| 70 | 5.6% | 70/75 | 5.2% |
| 75 | 6.2% | 75/80 | 5.7% |
| 80 | 7.3% | 80/85 | 6.6% |
| 85 | 8.3% | 85/90 | 8.0% |
| 90+ | 9.5% | 90/95+ | 9.3% |
Additional Benefits
Beyond increasing your retirement income, gift annuities offer you tax benefits, including:
- A partial income tax charitable deduction in the year you make 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 Northwestern’s work, but it can offer financial benefits. You will receive a federal income tax charitable deduction (when you itemize) in the year the gift is made and eliminate part of the capital gains tax you would have paid if selling the securities.
We Can Help
We would be happy to send you a free, no-obligation illustration showing you the increased benefits you can receive from a charitable gift annuity if you make your gift on or after July 1, 2018. Your personalized illustration will include your potential income tax charitable deduction and our annual payments to you for life. Contact Northwestern Gift Planning at 800-826-6709 or giftplanning@northwestern.edu to begin.