Do you worry that you will have enough money to last through retirement? There is a way to calm this concern and support charitable causes you care about. It is called a charitable gift annuity (CGA).
Here is how it works: You make a donation to the Smithsonian, and in return, we pay you or your loved one a fixed amount each year. This payment never changes, not even with fluctuations in the stock market, interest rates or inflation. After your or a loved one’s lifetime, we use the remaining balance of your gift to support our work.
Benefits
- Receive lifetime payments for yourself and possibly another person.
- Qualify for a charitable deduction for a portion of the value of the gift.
- Secure partially income tax–free payments.
- Save on capital gains taxes when you contribute appreciated securities.
- Know that you’re making a difference at the Smithsonian.
How to Create a Charitable Gift Annuity
Step 1: You make a gift in exchange for a charitable gift annuity.
Step 2: You qualify for an income tax charitable deduction for a portion of the gift amount.
Step 3: You receive lifetime payments.
Step 4: After the term of the agreement, the Smithsonian Institution receives the remaining funds.
Q&A
What will my lifetime payments be?
When you give through a CGA, you can have peace of mind knowing the amount you will receive each year will not change regardless of the state of the economy. Your annuity amount is based on your age at the time of your gift.
| Find Your Gift Annuity Rate | |||
|---|---|---|---|
| One Life | Two Lives | ||
| Age | Rate | Age | Rate |
| These rates are subject to change. Please contact us for a personalized illustration. | |||
| 60 | 5.2% | 60/65 | 4.8% |
| 65 | 5.7% | 65/70 | 5.2% |
| 70 | 6.3% | 70/75 | 5.8% |
| 75 | 7.0% | 75/80 | 6.5% |
| 80 | 8.1% | 80/85 | 7.3% |
| 85 | 9.1% | 85/90 | 8.7% |
| 90+ | 10.1% | 90/95+ | 9.9% |
How is my income tax deduction determined?
When you itemize deductions on your federal income tax return in the year of your gift, you can claim a charitable tax deduction. The amount is determined in part using an IRS interest rate called the charitable midterm federal rate. This rate can change slightly each month. (Please contact the Office of Gift Planning at 888-419-7584 or legacy@si.edu for the latest information.) Your deduction is also based on the amount of the gift and the ages of those individuals receiving the payments.
What if I do not need the payments today?
You can set up a deferred gift annuity where you delay receiving payments until a later date—such as when you reach retirement. You will get the income when you need it most, and the payout rate and your tax deduction will be significantly higher than that of an immediate payment gift annuity.
See How You Can Benefit
We would be happy to run a personalized calculation showing you the benefits you and your loved one can receive from this type of life income gift. Simply contact the Office of Gift Planning at 888-419-7584 or legacy@si.edu to learn more today.