Rates Have Increased for Charitable Gift Annuities

For the first time since 2018, recommended payout rates for charitable gift annuities (CGA) have increased, effective July 1, 2022. This is a great time to consider creating a CGA as you make plans for year-end giving to the organizations that are important to you - including Seattle University! If you have appreciated assets that would be more useful as income, or if you are concerned about market fluctuations and future uncertainty, you should know about charitable gift annuities and the benefits they provide, including guaranteed, dependable income for life.

A charitable gift annuity, or CGA, is different from a commercial annuity. With a charitable gift annuity, you can turn assets into income to provide for yourself and a spouse, and then the remainder becomes a gift to Seattle University in the future. If you itemize deductions for your tax return, you also receive a pro-rated charitable gift deduction.

A CGA is a simple contract between you and Seattle University. In exchange for an outright gift of cash, stocks, or bonds valued at $25,000 or more, Seattle University agrees to pay a fixed amount each year to you and/or another beneficiary for life. The remainder gift to Seattle University can be designated by you for a specific college, scholarship or program at SU.

The quarterly or monthly income can be deposited directly into your bank account. You will have to decide what you would you like to do with the additional income! In many cases, a portion of the income is tax-free. Here are some samples of the current rates:

Sample Payout Rates for a $25,000 CGA - Single Annuitant

Age 65 4.8% $1,200

Age 70 5.3% $1,325

Age 75 6.0% $1,500

Age 80 7.0% $1,750

Sample Payout Rates for a $25,000 CGA - Two Annuitants

Ages 65 & 70 4.5% $1,125

Ages 70 & 75 4.9% $1,225

Ages 75 & 80 5.5% $1,375

Ages 80 & 85 6.3% $1,575