Establish a Charitable Gift Annuity

Charitable gift annuities are one of the most popular planned gift options, and are offered by MPR. They provide donors with a safe fixed income for their lifetimes, as well as significant tax benefits.

Benefits of Charitable Gift Annuities

  • Safe, stable income for life

  • Excellent way to increase income from appreciated assets or cash

  • Easy to set up and manage

  • Reduces income tax and capital gains tax

MPR Charitable Gift Annuity details

  • Donors receive a fixed income for life, backed by all of the assets of MPR.

  • The minimum age for an MPR gift annuitant is 60. The minimum amounts for establishing an MPR gift annuity are $10,000 for an immediate gift annuity or $20,000 for a deferred gift annuity. Exceptionally large gift annuities may require special approval.

  • Assets commonly used to fund gift annuities include cash, stock (publicly traded), and mutual fund shares. Capital gains can be partially bypassed with appreciated property gifts.

  • The payout rate is determined by the age(s) of the annuitant(s). For example:

    • 5.1% for an individual, age 70, or 4.6% for a couple, both age 70

    • 6.8% for an individual, age 80, or 5.7% for a couple, both age 80

  • Donors receive a charitable income tax deduction for a portion of the contributed amount based on an IRS formula, taking into account the age(s) of the annuitant(s) and the applicable federal interest rate in effect for the month of the gift (or one of the two previous months).

  • If income is not needed now, a donor can obtain both a higher payout rate and a larger current income tax deduction by choosing to begin income payments at a later date. For example:

    • If an individual, age 70 today, defers payments five years to age 75, the payout rate would be 6.8%.

    • Similarly, a couple deferring payments five years until both are age 75, will enjoy a 5.8% payout rate.

See how a Gift Annuity might look for you with our Gift Calculator (click on “Gifts That Pay You Income”).

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