Provide income for a loved one
If you and your spouse or partner do not need to increase your own income, you can establish a charitable gift annuity for the benefit of someone else. For example, Brown alumni have used charitable gift annuities to provide financial support for parents, siblings, long-term domestic help, and even close friends.
Increase your income in retirement
If you want an income tax charitable deduction now but do not need payments until later, you can establish a charitable gift annuity now but elect to receive payments in the future. The longer you defer receiving payments, the higher your deduction and the higher the annuity rate.
Rollover your IRA for a charitable gift annuity
A new tax law allows donors over 70½ to receive a charitable gift annuity in return for a charitable contribution to Brown from their IRA account. This new gift plan combines a charitable gift annuity and a Qualified Charitable Distribution from an IRA.
A Qualified Charitable Distribution is a contribution from your IRA to Brown that counts towards your annual required minimum distribution but is not taxable as ordinary income. You can make a Qualified Charitable Distribution if you are at least age 70½. Unlike other distributions from your retirement account, you pay no income tax on a Qualified Charitable Distribution.
There are some rules and limitations: you can make this gift only once in your lifetime; there is a limit of $50,000; the entire annuity payment you receive will be taxable; and there is no income tax deduction for your contribution. However, as noted earlier, there is no income tax on your Qualified Charitable Distribution and it can help meet Required Minimum Distributions from your retirement account.