Charitable Gift Annuity
A charitable gift annuity allows the donor to make a gift of cash, stocks, or bonds to Rhodes and receive a fixed rate of income for life. The annuity can provide payments for one life, two lives, or a period of years. In addition to allowing the donor to make a gift to Rhodes, the annuity rate is often significantly higher than the return on CDs or savings accounts. The payments are fixed and therefore not subject to fluctuations in interest rates or stock markets. In addition, donors generally receive an income tax deduction at the time of the gift, and a portion of each payment is tax-free. Some donors also choose to defer payments until later in life, which results in higher payments and can be a great way to supplement income in retirement.
Charitable Remainder Trust
A charitable remainder trust allows the donor to make a gift of assets to a trust that Rhodes manages for the donor’s benefit. The college, as trustee, pays the income from the trust for one life, two lives, or a period of up to 20 years. Payments can either be variable or fixed. When the trust terminates, Rhodes uses the remaining assets to fulfill the donor’s designated purpose. Donors generally receive an income tax deduction at the time the trust is established, and capital gains tax on assets contributed to the trust may be deferred or eliminated. In addition, some portion of each payment may be tax-free.
For more information about planned giving, contact Nicki Soule ′93, Director of Golden Lynx Programs, at (901) 843-3740 or email@example.com.