The CMC Charitable Gift Annuity
Simple & Secure
When you make an irrevocable gift of cash or securities (or sometimes real estate) CMC agrees to make fixed payments to one or two people for life. Payments are backed by all of the assets of CMC. After the last payment, the remaining account balance comes to CMC to be used as you direct.
How You Benefit:
- Lifetime Income Receive fixed payments you can’t outlive
- Charitable Deduction You gift generates a charitable deduction for the gift portion of the gift
- Attractive Rates Claremont McKenna College offers attractive gift annuity rates.
- Secure Payments Your payments are guaranteed by all of the assets of Claremont McKenna College—now over $1.3 Billion. The College has earned an Aa3 credit rating from Moody's Investors Service
- Eliminate Investment Risk Fixed payments eliminate the impact of market volatility
- No Fees There are no fees or commissions associated with a CMC Charitable Gift Annuity
Giving Appreciated Securities
A key benefit of a charitable gift annuity is the ability to fund it with a gift of appreciated securities. Your annuity payment will be based on the full fair market value of the donated shares. A portion of the capital gain is completely avoided and the remainder is spread over an IRS-determined term of years.
Giving Appreciated Real Estate
For more information on funding a gift annuity with a gift of real estate, please click on the link at the top of this page.
Taxation of Your Payments
When Funded With Cash A significant portion of the annuity payment will be tax free over an IRS-determined term of years. Thereafter, the entire payment is taxed as ordinary income.
When Funded With Appreciated Securities or Real Estate The taxable portion of the capital gain is spread over an IRS-determined term of years, and converts a portion of the tax-free income into capital gain income. Thereafter, the entire payment is taxed as ordinary income.
A Gift Annuity in Your Estate Plan
You may provide income for a spouse or other heir, by including a provision in your estate plan that directs your estate to transfer a set amount, or a percentage of the estate, to fund a gift annuity payable a named individual. Commonly referred to as a testamentary Gift Annuity, we can provide you with the necessary language to accomplish this goal.