- Guaranteed Income for Life: Receive reliable, fixed payments for life, unaffected by market fluctuations.
- Higher Payout Rates: Earn significantly higher returns than CDs or savings accounts—up to 8% or more, depending on your age.
- Immediate Tax Savings: Qualify for a charitable tax deduction in the year you make your gift.
- Tax-Free Payments: Enjoy a portion of your annuity payments tax-free for several years.
A Charitable Gift Annuity may be a great fit if you:
- Want to make a meaningful gift while receiving guaranteed lifetime payments in return.
- Prefer higher, tax-advantaged payments from your planned gift.
- Value the security of fixed payments that never change.
- Appreciate that your payments are backed by Molloy University's financial strength.
- Like the idea of supplemental income you can't outlive.
Among all gifts that provide income, a Charitable Gift Annuity (CGA) is one of the simplest, most affordable, and most popular options. You make a donation to Molloy University, and in return, we agree to provide you with fixed lifetime payments.
The agreement is a straightforward contract between you and Molloy University. When the contract ends, the remaining balance of the annuity supports the area of our mission that you designated when you made your gift.
Key Tax Benefits
- Income Tax Deduction: You receive a federal income tax deduction for a portion of your gift, based on the full value of your contribution minus the present value of the payments you receive.
- Capital Gains Tax Advantage: If you fund your CGA with appreciated securities and name yourself as the beneficiary, you avoid immediate capital gains tax. Instead, a portion of your capital gain is taxable over time as you receive payments.
- Tax-Free Payments: A portion of each annuity payment is treated as a tax-free return of principal, effectively increasing your overall yield.
Flexible Payment Options
- You can start receiving payments immediately (Immediate Payment Gift Annuity).
- You can defer payments to a later date, increasing your annuity rate and charitable deduction (Deferred Payment Gift Annuity).
Common Uses
Supplementing Retirement Income
If you are retired and seeking higher, stable returns on low-yield investments (such as CDs or bonds), a CGA provides guaranteed, fixed income for life at rates often higher than traditional savings options.
Once the annuity matures, your gift supports Molloy University's mission.
Providing for Aging Parents
If you are part of the "sandwich generation"—caring for children while also supporting aging parents—an annuity can provide fixed, reliable income directly to your parents.
This allows you to assist them without financial strain, while also benefiting from an income tax deduction.
Key Planning Points
- A Charitable Gift Annuity at Molloy University can be established with a minimum gift of $10,000.
- CGAs make life-income gifts accessible to a broad range of donors.
- Payments can be made to a maximum of two beneficiaries.
- Payout rates depend on the age of the beneficiary—older donors receive higher payouts.
- Younger donors may benefit from a Deferred Gift Annuity, which allows payments to begin at a later date for a larger charitable deduction and a higher payout rate.
- A Charitable Gift Annuity can be an essential component of a comprehensive retirement and estate plan.