Giving and Generating Income

Gift annuity rates are now the highest they’ve been in years!
We have some exciting news that can boost your retirement income and support Wellesley. The American Council on Gift Annuities increased charitable gift annuity rates effective July 1, 2018. 

Giving and Generating Income

Do you want to support Wellesley College but worry about having enough income for yourself and your loved ones? Life income gifts such as gift annuities and charitable remainder trusts can provide donors with an income stream, significant tax savings, and the satisfaction of providing Wellesley with vital long-term resources.

Charitable Gift Annuity — Immediate or Deferred

A charitable gift annuity provides fixed payments for life in exchange for a gift of cash or securities to Wellesley. With the generous increase in annuity rates effective on July 1, 2018 donors are showing a renewed enthusiasm for this way to support our mission. Gift annuities are easy to set up and the payments you receive are backed by the general resources of Wellesley College. 

An immediate CGA may be right for you if:

  • You are at least 60 years of age.
  • You want to maintain or increase your cash flow, now even more attractive with the new—and higher—annuity rates.
  • You want the security of fixed, dependable payments for life.
  • You want to save income taxes or capital gains taxes.
  • You would like income that is partially tax-free.
  • You are considering a generous gift amount of $10,000 or more.

A deferred CGA may be right for you if:

  • You are at least 45 years of age, saving for retirement, and trying to lower your taxable income. The new—and higher—annuity rates can help achieve your goal of a comfortable retirement.
  • You want the security of fixed, dependable payments for life.
  • You want to save income taxes or capital gains taxes.
  • You would like income that is partially tax-free.
  • You are considering a generous gift amount of $10,000 or more.

We would be happy to send you a free, no-obligation illustration showing you the increased benefits you can receive from a charitable gift annuity. Your personalized illustration will include your potential income tax charitable deduction and our annual payments to you for life. Contact the Office of Gift Planning at 800.358.3543 or giftplanning@wellesley.edu to begin.

 


 

Charitable Remainder Unitrust

A charitable remainder unitrust can help you maintain or increase your income while making a significant gift to Wellesley. A unitrust provides more flexibility than other life income plans. The trust pays a percentage of the value of its principal, which is valued annually, to you or the beneficiaries you name. When the trust terminates, the remainder passes to Wellesley to be used as you have directed.  

A charitable remainder unitrust may be right for you if:

  • You want to provide income for yourself or others.
  • You want the possibility of income growth.
  • You want to save income taxes or capital gains taxes.
  • You want to choose the person who administers your gift and guides its investments.
  • You are considering a generous gift amount of $100,000 or more.

 


 

Charitable Lead Trust

This gift option is the opposite of a charitable remainder trust. Make a substantial gift to Wellesley in the form of fixed annual payments for a specified period of time. When the trust terminates, the remainder passes to your family or other heirs at reduced gift and estate tax cost.

A charitable lead annuity trust may be right for you if:

  • You have substantial assets that you do not need currently for your own financial security.
  • You want to provide for your family or other heirs.
  • You want to save gift taxes, estate taxes, and probate costs.
  • You want your gift to make a difference at Wellesley starting immediately.
  • You could consider a gift of $100,000 or more to benefit Wellesley and your heirs.

 


 

Pooled Income Fund

Consider if you are comfortable with variable income today and the opportunity for income growth in the future.

Offering shelter from capital gains taxes and a steady stream of income, pooled income funds are ideal for people who wish to give highly appreciated securities (minimum gift requirement of $10,000).

Benefits:

  • In return for your gift, receive income for the life of a beneficiary.
  • Avoid capital gains tax.
  • Receive an immediate income tax deduction for a portion of your gift to the fund.
  • Enjoy the choice of professionally managed funds with a variety of investment goals.

Wellesley offers three pooled income funds with different investment objectives:

  1. The Wellesley College High Yield Fund: Invested primarily in bonds and other fixed-income securities with the goal of maximizing current income; beneficiary should be at least 65 years old; 2018 estimated annual rate of return is 3.02% 
  2. The Wellesley College Balanced Fund: Invested in a balanced portfolio to provide both current income and growth; beneficiary should be at least 55 years old; 2018 estimated annual rate of return is 2.62%
  3. The Wellesley College Growth Fund: Invested primarily in stocks to create asset growth and increased value of holdings (rather than current income); beneficiary should be at least 45 years old; 2018 estimated annual rate of return is 2.01%

Contact: Office of Gift Planning | giftplanning@wellesley.edu | 800.358.3543