More than 570 life-income agreements have been established with the College. Presently over 46 million dollars is invested in life-income agreements.

Establishing a Life Income Agreement is a wonderful way to make a generous gift to Lafayette and generate a guaranteed income for life. In addition, you receive substantial tax benefits.

A Charitable Gift Annuity is a simple contract between you and Lafayette in which Lafayette agrees to make fixed payments to you and/or another beneficiary for your lifetime(s) in exchange for a donation. The minimum figure for a Charitable Gift Annuity at Lafayette is $5,000. It may be established through a gift of cash, securities, or other property. Your payout rate is determined by your age at the time of the gift. A portion of the annuity payment is tax-free through your life expectancy.

Payments are made to you on an annual, semiannual, or quarterly basis, as you prefer. Once a Charitable Gift Annuity is established, the annual payout remains fixed for life. However, if you choose to establish multiple Charitable Gift Annuities over time, both the payout rate and the charitable deduction will increase with each passing year.

Example:Mr. Thompson, age 75, gives $10,000 to Lafayette to establish a One-Life Charitable Gift Annuity. He will receive a guaranteed annual income of $710 ($10,000 x 7.1%) for his lifetime, of which $484 is tax-free and $4,006 of the gift can be claimed as a charitable deduction.

Through a Charitable Gift Annuity, you can receive income and tax benefits today for a gift you may have planned to make in your will. You can also enjoy the satisfaction of making a substantial gift to Lafayette while you plan for future economic needs for yourself and others who depend on you.

• Receive income for life (a portion is tax-free)
• Make a substantial gift to Lafayette and support a program that is meaningful to you
• Receive a significant tax deduction in year of gift
• Increase your income by giving low-dividend, highly appreciated securities
• Avoid gift and estate taxes on amount used to fund your gift annuity
• Avoid probate and estate administrative costs upon death of beneficiary
• Become a member of the Marquis Society
• Become a member of the James Madison Porter Society
• Establish an endowment fund in your name at termination of agreement
  

The accompanying chart gives you a breakdown of annuity rates.

Just like a One-Life Charitable Gift Annuity, a Two-Life Charitable Gift Annuity provides lifetime income for two individuals, usually (but not always) a husband and wife. As with the One-Life agreement, the annual payout rate is determined by the ages of both beneficiaries at the time of the gift. Payments are made for the lifetime of the longest surviving beneficiary.

Example: Mr. Jones is 80 and Mrs. Jones is 75. They make a gift of $10,000 to establish a Two-Life Charitable Gift Annuity. They will receive a guaranteed annual income of $750 ($10,000 x 7.5%), of which $417.75 is tax-free and $3,815.70 of the gift can be claimed as a charitable deduction. The annual income will continue for the life of the surviving beneficiary.

This chart gives you some examples of rates for different age pairings. We will be happy to work up figures for your individual needs.