Charitable Gift Annuity Rates on the Rise—Don’t Miss This Opportunity to Make a Difference

Gift annuity rate chart

There is exciting news if you would like to boost your retirement income and support the University of Maine Foundation. Effective July 1, 2022, charitable gift annuity rates will increase. 

How It Works 

The concept is simple. You make a donation using cash, marketable securities or other assets, and we, in turn, pay you, and another person if you choose, a fixed amount for life. With this type of gift, you can feel secure knowing you can count on receiving stable payments for as long as you live, despite market fluctuations. And now, if you make your gift on or after July 1, the gift annuity rates will be an estimated 0.4% to 0.6% higher than they are now.

Here’s an Example of How You May Benefit 

Under the current rate schedule, Mary, 79, transfers $25,000 in exchange for a charitable gift annuity. She will receive annual payments of $1,550, a rate of 6.2%. Instead, if Mary waits to make her gift on or after the new rate schedule is in place on July 1, the same gift amount will provide $1,700 in annual payments, reflecting a 6.8%. rate. That’s a payout rate increase of 0.6%.

In addition to the opportunity to increase your retirement income as you endow support for what means the most to you at the University of Maine, gift annuities can offer you numerous tax benefits, including: 

  • A partial income tax charitable deduction for your gift when you itemize.
  • Part of each payment is income tax-free throughout your estimated life expectancy. 
  • Capital gains tax savings on appreciated property you donate.

The Foundation does not offer gift annuities in all states, but we would be happy to send you a free, no-obligation illustration showing you the benefits of a gift annuity, including your potential income tax charitable deduction and our annual payments to you for life.