Of all the gifts that pay you back with a life income, the charitable gift annuity may be the simplest and most affordable. The CGA is a simple contract between Berkshire Country Day School and you which specifies that in return for you giving cash or marketable securities, the School will pay you and/or another beneficiary a fixed and dependable annual income for life. Your age and whether the income will be paid to one or two beneficiaries determine the annuity income.

Example:
Lewis Smith, age 68, is planning a gift to BCD, but wants to retain income for himself and his wife, age 66. By using low-yielding long-term appreciated stock worth $50,000 he achieves the following:

• funds a gift annuity paying 6.4% (based on American Council of Gift annuity rates as of 12/01);
• ... more than doubles his income to $3,200;
• receives a $11,946 charitable deduction; and
• his capital gains of $34,248 will be spread out over the life of the annuity.

...and, he makes a substantial gift to BCD!

For more information about charitable gift annuities, please contact your tax advisor.