Charitable gift annuities are used by donors to transfer cash or marketable securities to the College and receive fixed payments for life for themselves and/or another loved one.
Example: Virginia, age 80 and very active, wants to contribute to the Centenary Fund for Student Scholarships, but wants to use the income from a portion of her assets for her favorite hobby — traveling. After talking with members of the Philanthropy department at the College, Virginia realizes that she can transfer $35,000 to the College for a gift annuity and receive $3,220 per year (9.2%), part of which is tax-free income. She will also benefit from a $16,527 tax deduction now. At Virginia's death, her $35,000 annuity becomes a gift to the College's endowment.