older couple on a laptop Gift annuity rates increased on Jan. 1, 2024, and are the highest they have been since 2009. If you have ever considered a gift annuity or already have an annuity, we can now offer you an even more generous annuity payment. If you defer the start of payments for a year or more, the rate increase is even greater.

A gift annuity is a simple agreement between you and the Medical University of South Carolina Foundation promising to pay a certain amount of money to you, or someone you choose, for life. The annuity amount depends upon the age(s) when you make your gift and does not change for the rest of your lifetime(s).

You can receive an income tax charitable deduction now for the charitable value of your contribution. In addition, a part of each payment you receive can be tax free. If you contribute appreciated investments, like stocks or mutual funds, only a portion of the capital gain will be taxed, and that portion can usually be spread over your life expectancy.

aerial view of the MUSC campus New Opportunity

Under a new law, donors who are over age 70½ can make a qualified charitable distribution (QCD) in exchange for a charitable gift annuity. You can make this election only once in your lifetime and there is a limit of $53,000. Although there is no charitable deduction for your contribution, your QCD counts toward your required minimum distribution (RMD).

This is an opportunity to turn some of your IRA into a lifetime stream of income without paying income tax. And, if you are concerned about RMDs, this contribution will reduce the amount of income tax you will have to pay.

 

We would be happy to show how a charitable gift annuity could work for you. Please contact: Dana R. Taylor, CFRE, Senior Director of Development, Gift and Estate Planning, by emailing tayldana@musc.edu.