What is a Charitable Gift Annuity?
A charitable gift annuity is a simple contract between you and the Alpha Sigma Phi Foundation.
In exchange for your irrevocable gift of cash, securities, or other assets, the Alpha Sigma Phi Foundation agrees to pay one or two annuitants you name a fixed sum each year for life. The older your designated annuitants are at the time of the gift, the greater the fixed amount Alpha Sigma Phi Foundation can agree to pay. In most cases, part of each payment is tax-free, increasing each payment’s after-tax value.
Payments may be made annually, semiannually, or quarterly.
Benefits of Charitable Gift Annuities
1. You will qualify for a federal income tax deduction. Your deduction may vary modestly on the timing of your gift.
Note that deductions for this and other gifts of cash and non-appreciated property will be limited to 50% of your adjusted gross income. You may, if necessary, take unused deductions of this kind over the next five years, subject to the same 50% limitation.
2. Your designated annuitants will receive fixed payments in quarterly installments.
3. Your estate may enjoy reduced probate costs and estate taxes.
4. You will provide generous support to the Alpha Sigma Phi Foundation.
How It Works
1. You transfer cash, securities, or other property to Alpha Sigma Phi.
2. You receive an income tax deduction and may save capital gains tax.
3. When the gift annuity ends, its remaining principal passes to Alpha Sigma Phi.
4. Alpha Sigma Phi pays a fixed amount each year to you or to anyone you name for life. Typically a portion of these payments is tax-free.
For example: You irrevocably transfer $10,500 in cash to the Alpha Sigma Phi Foundation in exchange for a $462 annuity for annuitants age 69 and 66.