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Phillips Academy Giving

If you have been interested in establishing an arrangement that provides you and/or another with lifetime income while ultimately benefiting the Academy, a charitable gift annuity is a smart option to consider.

  • The charitable gift annuity is a simple contract in which Andover commits to pay you and one other beneficiary a lifetime income.
  • The income amount or rate paid is determined by the ages of the individuals you select to receive the lifetime income – in July 2015, a 70 year old individual directing $100,000 in appreciated securities to a charitable gift annuity would receive a 5.5% rate, causing the Academy to pay the him or her $5,500 a year.
  • Payments are fixed at the beginning of the contract, allowing for a steady income stream and are made on a quarterly basis in March, June, September, and December.
  • A portion of the income may be tax advantaged (tax-free).
  • Your gift annuity also will generate an immediate charitable income tax deduction.
  • Funding assets may be in the form of cash or readily marketable securities; funding minimum is $10,000.
  • Please contact Grace E. Curley '81, P'20 or Connie Pawelczak for more information.

    How It Works:

    1. You transfer cash, securities, or other property to Andover.
    2. You receive an income tax deduction and may save capital gains tax.
    3. Andover pays a fixed amount each year to you or anyone you name for life. Typically, a portion of these payments is tax-free.
    4. When the gift annuity ends, its remaining principal passes to Andover.

    Gift Annuity Payment Rates

    Sample Age - One Life Available Rate
    55 4.1%
    60 4.5%
    65 5.0%
    70 5.5%
    75 6.2%
    80 7.5%
    Sample Age - Two Lives Available Rate
    55, 50 3.6%
    60, 55 3.8%
    65, 60 4.1%
    70, 65 4.5%
    75, 70 5.1%
    80, 75 5.6%

    Example 1

    Mark Newman, age 75, owns securities worth $100,000, which are currently paying 2 percent or an annual income of $2,000. To provide long-term support to the sciences at Phillips Academy, Mark transfers his securities to Andover to create an immediate payment gift annuity that will provide him $6,200 annually for the rest of his life. He also receives a charitable income tax deduction of $42,032 for making the gift, which will ultimately benefit the science department

    Tax deduction now; fixed income later

    You can also choose to establish an annuity now that begins paying you income later. A deferred gift annuity offers the benefit of an immediate charitable income tax deduction coupled with a future fixed stream of income. The longer period you choose to wait to receive income, the higher the rate you are qualified to receive.

    Example 2

    Sarah Brown, age 60, plans to retire in 10 years. She wishes to make an unrestricted gift to Andover, but is concerned about retirement income for her and her husband, Sam, also age 60. She chooses to make a gift of $25,000 and defer payment until she and Sam are both 70 years old. She receives an immediate charitable income tax deduction of $7,001 and qualifies for an annual rate of 6.7 percent, or $1,675 annually, starting in 10 years and continuing for the longer of Sarah and Sam’s lifetimes.

    Fall 2015 Gift Annuity Postcard