Like most nonprofit organizations, Drexel University follows the recommendations of the American Council on Gift Annuities for setting the payout rates for charitable gift annuities (CGAs), and there is big news: CGA payout rates have just increased by approximately 0.4-0.6 percentage points (based upon the annuitant's age).
If you’re tired of being bounced around by the stock market, consider this: A CGA offers you the opportunity to make a gift to Drexel University and receive guaranteed, fixed income payments in return for the rest of your life! And, if you itemize deductions on your federal income tax return, you can claim an immediate charitable tax deduction for a portion of your gift. When your CGA terminates, the remainder of your gift will be used to support whatever program or department at Drexel that you designate.
Sample Rate Chart for a $15,000 One-Life Immediate CGA* - New Rates as of 1/1/2024
| Your Age | Your Rate | Charitable Deduction Amount | Annual Income |
|---|---|---|---|
| 80 | 8.1% | $7,056 | $1,215 |
| 75 | 7.0% | $6,544 | $1,050 |
| 70 | 6.3% | $6,026 | $945 |
| 65 | 5.7% | $5,754 | $855 |
*assumes an IRS discount rate of 5.8%
A CGA might be the right charitable giving choice for you if:
- The interest rate on a CD or other fixed-income investment is low and you would like to increase your cash flow.
- You have considered selling appreciated stock or mutual fund shares and reinvesting the proceeds to generate more income, but don't want to pay tax on the capital gain.
- You would like fixed payments that are unaffected by interest rates and stock prices and which you cannot outlive.
And don’t forget: IRA account holders (age 70 ½ or older) may make a one-time QCD transfer of up to $53,000 to fund an immediate payment CGA. (This unique opportunity does come with a few rules, so contact us with any questions.)