Bryn Mawr College

Planning a Gift

Bryn Mawr Legacy: A Gift for Learning, A Gift for the Future

Charitable Gift Annuity

A Charitable Gift Annuity is a simple contract between you and Bryn Mawr College. In exchange for a gift of cash, securities, or other assets, Bryn Mawr College agrees to pay one or two beneficiaries a guaranteed fixed income each year for life. A gift annuity will also provide you with a current federal income tax deduction as well as possible estate tax savings. The payments are secured by the general resources of Bryn Mawr College. Donors must be 65 years of age or older, and the minimum gift amount is $10,000.

The older the designated beneficiaries are at the time of the gift, the greater the fixed income Bryn Mawr College can agree to pay. In most cases, part of each payment is tax-free, increasing each payment's after-tax value. If you give appreciated property, the capital gains tax liability can be spread out over your lifetime rather than be all due in the year of your gift. Payments are usually made in quarterly installments.

• You will qualify for a federal income tax deduction. Note that deductions for gifts of long-term appreciated property will be limited to 30% of your adjusted gross income and 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 either kind over the next five years, subject to the same 30% or 50% limitation.
• The beneficiaries you name will receive fixed annual income for life, guaranteed by the general resources of Bryn Mawr College.
• If you fund the annuity with an appreciated asset, you will incur tax on only part of the gain. If you name yourself as an annuitant, this tax can be spread out over many years.
• Your estate may enjoy reduced probate costs and estate taxes.
• You will provide generous support of Bryn Mawr College.