For over 100 years, members of the Wheaton College family have utilized the charitable gift annuity to provide financial support for the College and a lifetime income stream for themselves.
A gift annuity is established when you make a gift to Wheaton College and in return, the College agrees to make annual, fixed-dollar payments for the lifetime of the person(s) you designate to receive the payments.
There are two basic types of charitable gift annuities:
The “current” payment gift annuity begins making payments immediately and is generally most appropriate for people age 60 and older.
The “deferred” gift annuity defers the annuity payments for 5 to 15 years and is generally appropriate for people less than 60 years old, who want to take advantage of a current charitable income tax deduction but who don’t want or need the payments to begin until they are older.
Income stream for life
The annuity payment is a fixed-dollar amount paid to you for as long as you live and is guaranteed by the assets of Wheaton College. The payment can be made annually, semi-annually, or quarterly. The annuity rate is based upon the age of the person(s) receiving the payments. Rates are generally higher for single, older individuals as opposed to younger couples.
You will receive a current charitable income tax deduction for your gift to Wheaton College (a portion of the total gift annuity amount). In addition to the deduction, a portion of your annuity payment is treated as tax-free income. The proportion of tax-free income depends on the age of the donor and the type of asset that was used to fund the gift annuity. A gift annuity funded with cash yields more tax-free income than one that is funded with appreciated securities.