Pick up any newspaper or watch the evening news, and you undoubtedly will hear reports about the volatility of the global economy. Although most indicators show strength in the U.S. economy, gyrations in the financial markets have left many individuals concerned about the future.
In these uncertain times, Penn is pleased to offer a safe harbor--the charitable gift annuity. In exchange for a gift of $10,000 or more, Penn will provide one or two beneficiaries with a fixed annuity for life. In addition to an attractive annuity rate, the donor is entitled to an income tax deduction in the year of the gift.
Example: John and Mary Smith, age 70, have 1,000 shares of XYZ stock they bought for $10,000 years ago. Even with the fluctuations in the market, their stocks have grown in value to $25,000. They are currently receiving a 1.5 percent dividend each year. They decide to use this stock to fund a charitable gift annuity at Penn. They are entitled to an income tax deduction of $7,440 and will receive an annuity of $1,700 per year as long as either of them is living. This is an increase of over $1,300 from their current dividend payments.
Below is a chart summarizing the benefits of Penn's one life charitable gift annuity program.
| One Life Charitable Gift Annuity | ||||
|---|---|---|---|---|
| Age | Gift | Rate | Deduction* | Annuity |
| 55 | $10,000 | 6.5% | $2,441 | $650 |
| 60 | $10,000 | 6.7% | $2,891 | $670 |
| 65 | $10,000 | 7% | $3,349 | $700 |
| 70 | $10,000 | 7.5% | $3,774 | $750 |
| 75 | $10,000 | 8.2% | $4,216 | $820 |
| 80 | $10,000 | 9.2% | $4,696 | $920 |
| 82+ | $10,000 | 9.5% | $4,994+** | $950 |
* Charitable deduction will vary slightly, depending on the timing of the gift due to fluctuations in the Federal Discount Rate.
**Annuities with an income beneficiary above the age of 82 will receive a higher income tax deduction.