jimijr
Member
I am considering setting up a charitable gift annuity when I retire.
My alma mater, Clarkson College, offers them with a fairly attractive interest rate, like around 5% which aint bad if you look at commercial rates.
What they do is give you the payout, say 5% for 20 years (=100% of your money back), only part of which is taxed, and you get a tax deduction up front. This can be spread out over a few years, too.
So if I gave them $50,000 in $10,000 chunks, I'd take a tax deduction in each of 5 years, and pay tax only on part of the $2500 payout each year.
They give me the interest and keep the principle, just like Met Life. Except here I get a slight tax break; and instead of an insurance company, my college gets the dough and I get my name on a little brick in a wall or something -- maybe they'd name a wing of the physics building for me HAHAHA! My old professors would be scratching their heads at that.
Any thoughts?
Dave M
My alma mater, Clarkson College, offers them with a fairly attractive interest rate, like around 5% which aint bad if you look at commercial rates.
What they do is give you the payout, say 5% for 20 years (=100% of your money back), only part of which is taxed, and you get a tax deduction up front. This can be spread out over a few years, too.
So if I gave them $50,000 in $10,000 chunks, I'd take a tax deduction in each of 5 years, and pay tax only on part of the $2500 payout each year.
They give me the interest and keep the principle, just like Met Life. Except here I get a slight tax break; and instead of an insurance company, my college gets the dough and I get my name on a little brick in a wall or something -- maybe they'd name a wing of the physics building for me HAHAHA! My old professors would be scratching their heads at that.
Any thoughts?
Dave M
