Charitable Gift Annuity

Gifts That Pay You Income

There is a way for you to support St. Olaf College 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 St. Olaf 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 is used to support learning at St. Olaf.

This gift vehicle can provide you with regular payments for life and allow St. Olaf 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

Charitable gift annuities can be established with a gift of $10,000 or more. Your income payments depend on your age at the time of the contribution. For those 70 years or older, consider a charitable gift annuity that provides annual payments right away. If you are younger, consider deferring these income payments — the amount paid to you or another beneficiary increases the greater the deferment.

See How It Works

An Example of How It Works

Immediate Payments

Couple smiling Once your gift is made, charitable gift annuities can start providing income payments monthly, quarterly, semi-annually, or annually for life. An example of how they work:

Dennis, 75, and Mary, 73, want to make a contribution to St. Olaf 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.

To learn more, download the free guide Charitable Gift Annuities: Gifts That Give Back.

Deferred Payments

Deferring annuity payments enables younger donors to receive tax benefits now and increase the income they receive — the longer the deferment the greater the payment. An example of how they work:

Couple smiling Craig, 56, and Douglas, 55, want to make a charitable gift this year that will help their and St. Olaf’s futures. They establish a $10,000 charitable gift annuity now that will provide income during their retirement years. They choose to defer payments until they are 71 and 70. Based on their current ages, they will receive a payment rate of 11.2%, which means that they will receive $1,120 each year for the remainder of their lives. They are also eligible for a federal income tax charitable deduction of $4,216* when they itemize. Finally, they know that after their lifetimes, the remaining amount will be used to support Oles and St. Olaf College.

*Based on a 5.2% charitable midterm federal rate. Deductions and calculations will vary depending on your personal circumstances.

Learn more about your options and download the free guide Deferred Gift Annuities: Plan Now, Benefit Later.

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Next Steps

Contact us at 800-776-6523 or plannedgiving@stolaf.edu for additional information on charitable gift annuities or to chat more about the personal benefits of creating an annuity with St. Olaf.
Seek the advice of your financial or legal advisor.
If you include St. Olaf in your plans, please use our legal name and federal tax ID.

Legal name: St. Olaf College
Address: 1520 St. Olaf Avenue
Northfield, MN 55057
Federal tax ID number: 41-0693979

Payments for Life

Learn more about the many benefits of a charitable gift annuity in our FREE guide Charitable Gift Annuities: Gifts That Give Back.