Higher Charitable Gift Annuity Rates
Increase your retirement income and shape the future of Northwestern with a charitable gift annuity.
Good news: Northwestern has raised its gift annuity rates, effective July 1, 2018. The rates are now the highest they have been in years.
How It Works
With a charitable gift annuity, you make a donation using cash, marketable securities, or other assets, and the University, in turn, pays you a fixed income for life. This type of gift can boost your retirement income and provide the security of reliable, predictable payments that continue until the end of your lifetime.
Now is a great time to contact Northwestern Gift Planning at 800-826-6709 or giftplanning@northwestern.edu for a personalized illustration of your charitable gift annuity rates and benefits.
An Example:
Barbara, 72, transfers $25,000 to Northwestern in exchange for a charitable gift annuity.
With the old rates: Barbara would have received annual payments of $1,350, based on a payout rate of 5.4 percent.
With the new rates: Barbara receives annual payments of $1,450, based on the new payout rate of 5.8 percent.
| Sample Charitable Gift Annuity Rates (effective July 1, 2018) | |||||
| One Recipient | Two Recipients | ||||
| Age | NEW RATE | Old Rate | Rate | NEW RATE | Old Rate |
| 60 | 4.7% | 4.4% | 60/65 | 4.3% | 4.0% |
| 65 | 5.1% | 4.7% | 65/70 | 4.7% | 4.4% |
| 70 | 5.6% | 5.1% | 70/75 | 5.2% | 4.8% |
| 75 | 6.2% | 5.8% | 75/80 | 5.7% | 5.3% |
| 80 | 7.3% | 6.8% | 80/85 | 6.6% | 6.1% |
| 85 | 8.3% | 7.8% | 85/90 | 8.0% | 7.3% |
| 90+ | 9.5% | 9.0% | 90/95+ | 9.3% | 8.8% |
Additional Benefits
Beyond increasing your retirement income, gift annuities offer tax benefits, including:
- A partial income tax charitable deduction 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 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.
Request Your Personalized Illustration
We would be happy to send you a free illustration showing you the increased benefits you can receive from a charitable gift annuity. 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 planning your gift.