Charitable Gift Annuities
(Gift example*)

Immediate Charitable Gift Annuity

Joe, age 78, decides to give a cash gift of $100,000 to Yale in exchange for a 6.5% charitable gift annuity in honor of his upcoming 60th reunion. He receives an annual payment of $6,500 for the rest of his life, $884 of which is taxed as ordinary income and $5,616 of which is tax-free for many years. Joe can also claim a charitable contribution deduction of $41,015 in the year of his gift.

Joe’s gift annuity provides him a secure source of income for the rest of his life, and allows him to save on income taxes as a result of his charitable deduction and the favorably taxed payments he will receive. He will also receive reunion gift credit for the full amount of the gift. Most importantly, he receives the satisfaction that comes from supporting Yale.

Summary of Benefits

6.5% Charitable Gift Annuity
ASSUMPTIONS:
Annuitant	78
Cash Donated	$100,000.00
Payout Rate	6.5%
Payment Schedule	quarterly at end
BENEFITS:
Charitable Deduction	$41,015.00
Annuity	$6,500.00
Tax-free Portion	$5,616.00
Ordinary Income	$884.00
After 10.5 years, the entire annuity becomes ordinary income.
Basic Gift Illustrations IRS Discount Rate is 0.6% These calculations are for illustration purposes only and should not be considered legal, accounting, or other professional advice. Your actual benefits may vary depending on several factors, including the timing of your gift.