Charitable Gift Annuity (CGA)

What's a "CGA"?

Charitable Gift Annuities (CGA's) are contractual agreements between donors and Pennsylvania College of Technology. In exchange for a charitable gift made by a donor, Penn College agrees to make specific payments to one or two annuitants or beneficiaries, as long as either is living.

Penn College CGA annuity rates are based on the standard rates established by the American Council on Gift Annuities. Establishing a CGA is an option that is becoming more and more popular with our donors. In addition to receiving immediate tax benefits and periodic annuity payments during their lifetime, a donor also gains the personal satisfaction from making a gift that will make a difference for Penn College, its programs of study, and most importantly, its students.

A minimum gift of $10,000 is required to establish a CGA with Penn College. Individuals who would like to establish a CGA with the College must be at least 55 years old, and they must be at least 60 years old to receive payout. The CGA can be established in one of two versions: "single life" agreements, paying to only one person for their lifetime; or "two-lives in succession" agreements, paying to one individual for their lifetime, then paying to a second named individual if that person survives.

Gifts to establish a Penn College CGA can be in the form of cash or negotiable securities. Payments are determined by the age and number of income beneficiaries, and the time between when the gift is made and when the payments begin.

The rate for each CGA is permanently fixed at the time the CGA is established. As of 1/1/2012, rates for a single life CGA range from 4.4% at age 60 to 9.0% at age 90 and over. These rates change periodically. Please call the Institutional Advancement Office for current rates.

Donors may set up a Penn College CGA in one of two forms:

  • Immediate Gift Annuity, under which the annuitant, if he or she is at least 60, begins receiving payments during the payment period immediately following the contribution.
  • Deferred Gift Annuity, under which the annuitant starts receiving payments at a future date, chosen by the donor and more than one year after the date of the Contribution.

A charitable gift annuity is not designed primarily as an investment, but rather as a charitable gift.

For more information, or to establish a Penn College CGA, please contact us.

Penn College is not engaged in providing legal or tax advisory services. The information provided here is of a general character only. For advice and assistance in specific cases, you should enlist the services of an attorney or other professional tax or financial adviser(s).

The Pennsylvania College of Technology Foundation, Inc. and Pennsylvania College of Technology are non-profit 501(C)(3) tax exempt organizations.

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