An annuitant must be sixty years of age at the date of the agreement. Rates offered are based on the annuitant's age at the time of the gift. Payments are made quarterly, and a substantial portion of each payment is received tax free. Gift annuities generate an immediate charitable income tax deduction. Capital gains are reduced dramatically and can be reported over a number of years so that those taxes are not due all at one time.
Annuities based on two lives are also available, but the rates are generally lower.
Trusts are very well suited for gifts of cash and appreciated securities, and can also be funded with real estate, privately held stock, or other non-cash assets. Charitable remainder trusts allow donors flexibility in that they may choose their own payout rate and their own trustee as well. Unitrust income is calculated by applying the payout rate to the value of the trust assets at the beginning of each year, allowing the donor's income to keep pace with inflation. Annuity trust income is determined at the time the trust is funded by applying the payout rate to the initial value of the trust. Smith College Pooled Income Funds offer an excellent opportunity to provide a significant future gift to Smith while enjoying lifetime income and substantial tax advantages.