Institutional Advancement
Hager Lifelong Education Center, Rm. A229 · (570) 320-8000 or 1-866-GIVE-2-PC (448-3272)
Charitable Gift Annuity (CGA)
Charitable Gift Annuities are contractual agreements between donors and Penn College. In exchange for a donor's gift, Penn College guarantees to make specific payments to one or two annuitants or beneficiaries throughout their lifetimes.
A Penn College CGA offers attractive rates of return and is becoming popular with donors. In addition to receiving immediate tax benefits and periodic annuity payments during their lifetimes, donors gain personal satisfaction by making a gift that will make a difference for Penn College programs and students.
A minimum gift of $5,000 is required to establish a Penn College CGA. The donor must be at least 55 years old; they must be at least 60 years old to receive payout. The CGA can be established as a "single life" agreement, paying to only one person for his/her lifetime or a "two lives in succession" agreement, paying to one individual for his/her 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. Payment rates are determined by the age and number of income beneficiaries, and the time between when the gift is made and when the payments begin.
Current rates for a single life CGA range from 5.7% at age 60 to 11.3% at age 90 and over. The recommended rates of return are normally set once each year, but they may be revised more or less frequently. The rate for each CGA is permanently fixed at the time the CGA is established.
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.
The Penn College Institutional Advancement Office is not engaged in providing legal or tax advisory services. This information is of a general character only, and is subject to changes in state and federal tax laws, regulations and interpretations. For advice and assistance in specific cases, you should enlist the services of an attorney or other professional tax or financial adviser(s).