Charitable Gift Annuities

A gift annuity is a simple contract between you and Agnes Scott College. A gift of $10,000 or more for a charitable gift annuity earns you income for life at attractive guaranteed rates. A portion of the gift also qualifies for a charitable tax deduction, and some of the income may be tax free. A gift annuity can have one or two beneficiaries.

• You make an irrevocable gift of cash or appreciated securities.
• Agnes Scott promises to pay you a guaranteed percentage annually.
• The percentage paid by the gift annuity is determined by your age at the time of the gift.
• You receive an income tax deduction in the year of the gift, for the value of the remainder interest.  Any unused deduction may be carried forward for an additional five tax years.

Funding a gift annuity with appreciated stocks can be especially advantageous. If you own highly appreciated stocks yielding little dividends, a charitable gift annuity is an excellent way to move these assets into a financial instrument that guarantees income for you at an attractive fixed rate for life—while making a meaningful gift to Agnes Scott.  You also avoid much of the capital gains tax that would be due if you were to sell the stock, and you can spread the capital gains tax you do incur over the life of the annuity. Please see our instructions for making a gift of stock to Agnes Scott.

If you would like more information, please contact Michelle S. Staes, J.D., director of capital gifts and planned giving, at 404.471.5475 or 800.868.8602, ext. 5475 or mstaes@agnesscott.edu.

Please consult with your attorney or accountant on how this general information relates to your specific financial and estate planning situation. The office of development is pleased to provide you or your advisors with more detailed information.

Charitable Remainder Trusts

A charitable remainder trust is more complex than a charitable gift annuity and typically involves start-up costs to the donor. However, the CRT is also more flexible than a gift annuity—you can name multiple beneficiaries, select the percentage of income each beneficiary will receive, and select the trustee who will oversee investment of the funds.

• You make an irrevocable gift of cash or appreciated securities to the CRT.
• The trustee pays a guaranteed percentage or amount annually to one or more life-income beneficiaries named by you.
• The percentage paid by the CRT is determined by your needs and certain IRS regulations, and the income is taxed as ordinary income.
• You receive an income tax deduction in the year the Trust is funded, for the value of the remainder interest.
• Any unused deduction may be carried forward for an additional five years.
• Upon the death of the income beneficiary, the assets are transferred to one or more charitable remainder beneficiaries named by you.
• You may designate the college's future use of the gift, or make the gift unrestricted.

There are two kinds of charitable remainder trusts:

• A Charitable Remainder Unitrust pays a fixed percentage of the trust annually to the income beneficiaries.  The dollar amount goes up or down each year depending on the trust’s performance.  Assets can be added to a unitrust at a later time.
• A Charitable Remainder Annuity Trust pays a fixed dollar amount, determined at the funding of the trust, to the income beneficiaries.

If you would like more information, contact Michelle S. Staes, J.D., director of capital gifts and planned giving, at 404.471.5475 or 800.868.8602, ext. 5475 or mstaes@agnesscott.edu.

Please consult with your attorney or accountant on how this general information relates to your specific financial and estate planning situation. The office of development is pleased to provide you or your advisors with more detailed information.