North Central College - Naperville, IL

Charitable Gift Annuity

A charitable gift annuity offers an attractive net after-tax return that varies with your age.

The charitable gift annuity program at North Central College was created as a service for the College's alumni and friends who want to make a substantial gift to North Central while still retaining income from the gift property during their lives. A charitable gift annuity is a combination of gift and investment. You, the contributor, transfer cash or stock to the College in exchange for the College's promise to pay you a guaranteed set income for the rest of your life.

The gift annuity payments may be for one or two lives. Payments may start immediately or be deferred for a designated number of years. An actuarially determined portion of what you transfer to North Central should be the amount you can deduct as a charitable contribution from your income tax. An actuarially determined portion of the annuity income payments to you may also be free from income tax.

In addition to this two-pronged tax benefit, you'll receive a lifetime income at attractive rates. A 72-year-old donor, for example, could receive an annuity payback rate each year of 7.2 percent of the amount transferred to the College. This same donor could receive an immediate charitable contribution federal income tax deduction of approximately 45 percent of the principal amount transferred for the gift annuity and approximately 53 percent of the annual annuity paid back to the donor might not be subject to income tax.