Do you own stock or mutual fund shares that have increased in value since you bought them, yet are paying you little (or no) dividend income? Those shares may be ideal to fund a charitable gift annuity (CGA).
Using appreciated securities to create a CGA to benefit a qualified charity, like Drexel University or the College of Medicine, will provide you with guaranteed income for life, an immediate income tax deduction and will significantly reduce your capital gains tax liability. And, with the recent increase in CGA payout rates, there is no better time than now!
This chart illustrates the financial benefits of a CGA funded with $10,000:
|
Your Age |
Your Rate |
Estimated Charitable Deduction |
Annuity Payment |
|
90 or over |
9.1% |
$6,426 |
$910 |
|
85 |
8.1% |
$5,756 |
$810 |
|
80 |
7.0% |
$5,246 |
$700 |
|
75 |
6.0% |
$4,884 |
$600 |
|
70 |
5.3% |
$4,508 |
$530 |
|
65 |
4.8% |
$4,156 |
$480 |
Funding a CGA with stock is an excellent, tax-savvy way for you to make a meaningful gift to your alma mater. To see if this charitable gift option may be right for you, contact David Toll, JD, Senior Associate Vice President for Gift Planning, at (215) 895-1882 or giftplanning@drexel.edu.