Cutting-Edge Giving Method Offered by Wharton

A new giving tool, the Making History Impact Annuity, is a unique way to participate in Penn’s Making History Campaign in support of Wharton today, while providing you with a secure stream of income tomorrow.

Like a charitable gift annuity (CGA), this giving vehicle provides guaranteed payments, backed by the University of Pennsylvania, to you or a loved one. It’s an easy way to supplement income, and it’s a gift that can provide tax advantages while supporting Wharton and having an immediate impact.

Here’s how the Making History Impact Annuity works:  With a gift of $25,000 or more, Penn will provide guaranteed lifetime annuity payments at an attractive rate. As the donor, you will designate one or more of Wharton’s priorities to receive the first five years of payments*. Thereafter, you’ll enjoy the advantage of the annuity payments for life. On termination of the annuity, the balance again supports Wharton.

The Impact Annuity provides the following benefits:

– Tax advantaged payments for life guaranteed by the University for one or two individuals, neither of which need be the donor.

– Greater immediate charitable income tax deduction, given that the first five years of gift payments are included in the current charitable deduction, as well as potential capital gains tax advantages.

– Attractive rates of return based on the age of the annuitant.

– Active participation in the Making History Campaign so you are able to see the impact of your gift immediately.

– Qualification for membership in the Penn Harrison Society and Wharton Hattersley Society.

To illustrate, here is a sample single-life rate chart for a $25,000 gift (lower two-life rates also available):

Annuitant Age 60 65 70 75 80 85
Annuity Rate 4.8% 5.3% 5.8% 6.5% 7.5% 8.4%
Payment $1,200 $1,325 $1,450 $1,625 $1,875 $2,100
Charitable Deduction++ $10,733 $12,286 $14,360 $16,505 $18,597 $20,816

 * Optional three-year payment commitment for individuals aged 75 and over.

++Deduction will vary with changes in the IRS Discount Rate and exact birth date.  Assumed discount rate 2.2%.

For further information or a custom Making History Impact Annuity illustration based on your age, please contact me, Greg Johnson, directly at (215) 746-6962 or grege@upenn.edu

Editor’s note: The article and examples are for information and illustration purposes only and are not intended as legal, financial or tax advice.  We encourage you to consult your own advisor.

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