What is a Charitable Gift Annuity?

A charitable gift annuity is a simple contract between you and Reformed Theological Seminary.

In exchange for your irrevocable gift of cash, securities, or other assets, Reformed Theological Seminary agrees to pay one or two annuitants you name a fixed sum each year for life. The payments are backed by the general resources of Reformed Theological Seminary.

The older your designated annuitants are at the time of the gift, the greater the fixed payments Reformed Theological Seminary can agree to pay.

In most cases, part of each payment is tax-free, increasing each payment's after-tax value. If you give appreciated property you will pay capital gains tax on only part of the appreciation. In addition, if you name yourself as an annuitant the capital gains tax will be spread out over many years rather than be all due in the year of your gift.

Payments are usually made in annual, semiannual, or quarterly installments.

Charitable gift annuities may be immediate or the payments may be deferred to a future time, such as retirement, thus creating a significantly greater income to the gift annuitants.

How does a Charitable Gift Annuity work?

• Cash, securities or other property of value is transferred to Reformed Theological Seminary
    
• An agreement is entered into between RTS and the donor to pay the donor a fixed income for life on one or two persons in exchange for the property transferred 
  
  
  • The older the donor(s) the greater the life-time payments
  • Payments can be monthly, quarterly, semi-annually or annually
  • There is a charitable deduction for a major portion of what is transferred which can be taken in that tax year or spread, depending on one’s circumstances
  • A good portion of the annuity payment is not taxable since it is considered a return of one’s own principal
      
• At the death of the annuitant(s) what remains in the annuity account passes to RTS for use in its programs

What are the benefits of a Charitable Gift Annuity?

1. You will qualify for a federal income tax deduction. Note that deductions for gifts of long term appreciated property will be limited to 30% of your adjusted gross income. Gifts of cash, short term appreciated property, ordinary income property, and non-appreciated property will be limited to 50% of your adjusted gross income. You may, if necessary, take unused deductions of either kind over the next five years, subject to the same 30% or 50% limitation.
     
2. The annuitants you name will receive fixed annual payments for life, backed by the general resources of Reformed Theological Seminary.
     
3. If you fund the annuity with a long term appreciated asset (one you have held for more than one year), you will incur tax on only part of the gain. If you name yourself as an annuitant, this tax will be spread out over many years.
     
4. Your estate may enjoy reduced probate costs and estate taxes.
     
5. You will provide generous support of Reformed Theological Seminary.

Rates for single-life Charitable Gift Annuities

Click here to view the rates

Required Disclosure

Click here to view the Gift Annuity Disclosure Statement

Charitable Gift Annuity Application

Click here to download and fill out the Gift Annuity Application