Planned Giving

Charitable Gift Annuity

A charitable gift annuity is a simple contract between you and Millsaps College, in which Millsaps agrees to pay you (and/or another named beneficiary) a fixed income for the life or lives of your named beneficiary(ies). The amount of income is based on a rate determined by beneficiary age and is set by the American Council of Charitable Gift Annuities. Many Millsaps alumni and friends have found the charitable gift annuity a very simple way to convert low yielding assets into a higher fixed income payment for retirement, as well as provide Millsaps with a significant gift in the future.

You are entitled to a charitable income tax deduction for the gift portion of the annuity in the year the gift is made. If cash is used to fund your annuity, you may deduct up to 50% of your adjusted gross income; if an appreciated asset, such as stock is used to fund your annuity, your deduction is limited to 30% of adjusted gross income. Another tax benefit is that capital gains are spread over the term of the annuity rather than being reported in the year of sale. Also, depending on the source of your gift, much of the annuity income may be tax-free. Finally, the total amount of your gift is removed from your estate for estate tax purposes.

A gift annuity can be set up with a simple four-step process. First, you can request a proposal that details the specific benefits of a gift annuity based on your situation. Second, we prepare a gift annuity application for your approval. Next the transfer of assets (check, stock, bonds, etc. - $5,000 minimum) to Millsaps College takes place. Finally, you receive the formalized gift annuity contract specifying the payment dates and the amount of each payment you will receive for life.

The rate you (or your beneficiary) will be paid is determined by age. The older the income beneficiary, the higher the rate paid. For example, the rate for a single-life annuity for a 60 year old is 6.7% whereas the rate for a 75 year old is 8.2%. You can view our Single Life rates by clicking the box to the right.

If you do not need your income payments to begin right away, you can defer the payments until such time as you need additional income - such as at retirement. The payments will be based on your original contribution plus accumulated earnings from the time of the gift, and on your age when payments begin. This plan gives you a current income tax deduction, and the opportunity to accumulate income for the future.

Millsaps benefits from your gift at your death, and under certain circumstances during your life. Our contract with you requires us to hold your gift in reserve until our income obligations are satisfied.