I had three different goals I wanted to accomplish at the same time. I wanted to make a long term commitment to Andover, recognize my 50th reunion (still a few years away!), and create some future retirement income. The gift annuity was a perfect solution and Andover made it very easy to accomplish.Tony Pucillo ’75, P’03, ’06, ‘08
There's a way for you to support Phillips Academy and feel confident that you have dependable income in your retirement years. You can do this with a charitable gift annuity.
With a charitable gift annuity you agree to make a gift to Andover and we, in return, agree to pay you (and someone else, if you choose) a fixed amount each year for the rest of your life. The balance, upon your passing, is directed to the campus priority you have shared with us.
This type of donation can provide you with regular payments for life and allow Andover to further our mission. You can also qualify for a variety of tax benefits depending on how you fund your gift.
If you fund your gift annuity with cash or appreciated property, you qualify for a federal income tax deduction if you itemize. In addition, you can minimize capital gains taxes when you fund your gift with appreciated property.
And now, you can fund your gift using your IRA assets. If you are 70½ and older, you can make a one-time election of up to $53,000 to fund a gift annuity. While your gift does not qualify for an income tax deduction, it does escape income tax liability on the transfer and count toward all or part of your required minimum distributions.
Gifts That Pay
Your payments depend on your age at the time of the donation. If you are younger than 60, we recommend that you learn more about your flexible gift options and download this guide Deferred Gift Annuities: Plan Now, Benefit Later.
See How It Works
An Example of How It Works
Dennis, 75, and Robbie, 73, want to make a contribution to Andover but they also want to ensure that they have dependable income during their retirement years. They fund a $25,000 charitable gift annuity with appreciated stock that they originally purchased for $10,000.
Based on their ages, they will receive a payment rate of 6.0%, which means that they will receive $1,500 each year for the remainder of their lives. They’re also eligible for a federal income tax charitable deduction of $8,792* when they itemize.
*Based on a 5.2% charitable midterm federal rate. Deductions and calculations will vary depending on your personal circumstances.
Calculate Your Benefits
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Payments for Life
Learn more about the many benefits of a charitable gift annuity in our guide Charitable Gift Annuities: Gifts That Give Back.