A Charitable Gift Annuity
- A prospective donor transfers cash or securities to The Prout School and receives a lifetime annuity payment from the gift. The rate is based on the age and number of annuitants. The donor receives a charitable income tax deduction based on the age and number of annuitants (generally, the donor or the donor and the donor's spouse). The deduction may be claimed in the year of the gift up to the contribution ceilings previously outlined. The donor avoids immediate capital gains tax on the transfer of appreciated securities, and the annual payment is based on the fair market value of the gift. A portion of each annuity payment is tax-free for both state and federal purposes for a period of years (based on the donor's life expectancy). The gift annuity is appropriate for a donor who wants a fixed rate that will never change. Prospective donors interested in a charitable gift annuity may contact Mrs. Rhonda Skinkle in The Office of Institutional Advancement at (401) 789-9262 ext. 537 for further details.