What is a Flexible Gift Annuity?
A flexible gift annuity is a simple contract between you and Pennsylvania College of Optometry Foundation that benefits Salus University or one of its Colleges.
At this time the foundation that receives all contributions in support of the University and its Colleges continues to be named the Pennsylvania College of Optometry Foundation. Charitable gift annuities for the University or its Colleges should still be made with the PCO Foundation. However, your gift can be designated to Salus University or any of the four Colleges, such as the Pennsylvania College of Optometry or the George S. Osborne College of Audiology.
In exchange for your irrevocable gift of cash, securities, or other assets, Pennsylvania College of Optometry Foundation agrees to pay one or two annuitants you name a fixed sum each year for life, with payments starting at least one year after your gift. The annuitants may elect to start receiving payments on any one of a range of dates. These dates and their corresponding payment amounts must be listed in your agreement. The older your designated annuitants are at the time of gift and the longer they elect to defer payments, the greater the fixed income Pennsylvania College of Optometry Foundation can agree to pay. In most cases, part of each payment is tax-free, increasing each payment's after-tax value.
Payments are usually made annually, semiannually, or quarterly.
If you irrevocably transfer $50,000 in cash to Pennsylvania College of Optometry Foundation in exchange for an annuity with elective payment start dates that range from 6/18/2004 to 2023 for an annuitant, age 72,
Your Benefits Include:
- You will qualify for a federal income tax deduction of approximately $20,366. Your deduction may vary modestly depending on the timing of your gift. Note that deductions for this and other gifts of cash and non-appreciated property will be limited to 50% of your adjusted gross income. You may, if necessary, take unused deductions of this kind on tax returns over the next 5 years, subject to the same 50% limitation.
- If your designated annuitant elects to start receiving payments in 2004, from that date forward your designated annuitant will receive fixed payments in quarterly installments totaling $3,650 each year, for life. In addition, $2,146 of each year's payments will be tax-free for the first 13.8 years.
- Your estate may enjoy reduced probate costs and estate taxes.
- You will provide generous support of Salus University or one of its Colleges.
The deduction and annuity taxation numbers shown above may change if the elective payment start dates that are listed in your agreement do not match the elective payment start dates used in this example.
For More Information
Lynne C. Corboy,
Director of Development