The IRA Charitable Rollover Gift Annuity Plan

The IRA Charitable Rollover Gift Annuity Plan

Give from Your IRA and Receive a Lifetime of Payments

Donors over 70½ can receive a lifetime of payments in return for a contribution to Ransom Everglades School from their IRA account. This gift plan combines a charitable gift annuity and a Qualified Charitable Distribution (QCD) from an IRA. Let’s see how it works.

Charitable Gift Annuity — A charitable gift annuity is a simple contract between you and Ransom Everglades School promising to pay you a fixed amount of money each year for life. The gift annuity contract is issued to you in exchange for your charitable contribution. The amount Ransom Everglades School will agree to pay you depends upon your age at the time of your gift and does not change for the rest of your lifetime. Ransom Everglades School invests and manages your contribution and your payments are backed by the financial resources of Ransom Everglades School. Some or all of the payment you receive each year is taxed as ordinary income.

Qualified Charitable Distribution — A QCD — sometimes called a “charitable rollover” — is a contribution from your IRA directly to Ransom Everglades School. You can make a QCD if you are at least age 70½ at the time of your gift. Unlike other distributions from your retirement accounts, you pay no income tax on a Qualified Charitable Distribution, although there is no charitable deduction for your contribution. However, your QCD contribution counts toward your Required Minimum Distributions (RMD) from your IRA without creating taxable income for you.

Charitable Rollover Gift Annuity — Under a new law effective in 2023, some donors can make a QCD in exchange for a charitable gift annuity. There are some rules and limitations:

  • You can exercise this option only once during your lifetime.
  • There is an aggregate limit of $53,000 for 2024.
  • The entire payment you receive from your charitable gift annuity will be subject to income tax.
  • You can include your spouse as a recipient of the annuity payment.
  • There is no income tax deduction for this contribution, although there is no tax on the QCD either.

Example

Consider Alan, a 75 year old who would like to make a special contribution to support Ransom Everglades School. Alan has substantial assets in his IRA, and he knows that he is facing a RMD this year. Even though he doesn’t really need the income, Alan knows that his RMD is going to increase his income tax. Instead, Alan chooses to make a $53,000 QCD to Ransom Everglades School in exchange for a charitable gift annuity which will pay him $3,710 (7%) per year for the rest of his lifetime. Alan understands that he is allowed to make this election only one time, but he is looking forward to securing a stream of payments for his lifetime while reducing his RMD and making a generous contribution to Ransom Everglades School.e].

Please contact Melissa Bonafonte at mbonafonte@ransomeverglades.org or call 305-460-8215 for more information. We would be happy to work with you and your advisors to help determine whether this new option is right for you.

  • Nekeisha Clement P’25

    “I love RE because I love the environment and community that surrounds the school. The staff, educators and education are top notch. I cannot ask for anything better for my daughter.”

  • Claudia Miyar Angles ’96

    “I am grateful for the phenomenal teachers that pushed me to be the best student I could be and took interest and fostered a real passion.”

  • Faculty Emerita Buzzie Borona-Polson

    “I love RE because I spent 35 amazing years of my life teaching there. I still see so many of my students who call, come to visit, and regale me with their latest escapades.”

  • Eugene Williams, Jr. ’87

    “I love RE because it's where my talents and abilities were cultivated and appreciated.”

  • Alicia Medina ’26

    “This is the place where I have made friends, found new passions, and discovered new sides to myself. This is the place that has always pushed me. Here at Ransom Everglades, we have a community that is always there to lend a helping hand.”

Middle School

2045 South Bayshore Drive, Coconut Grove, FL 33133
Phone: 305 250 6850

Upper School

3575 Main Highway, Coconut Grove, FL 33133
Phone: 305 460 8800
Founded in 1903, Ransom Everglades School is a coeducational, college preparatory day school for grades 6 - 12 located on two campuses in Coconut Grove, Florida. Ransom Everglades School produces graduates who "believe that they are in the world not so much for what they can get out of it as for what they can put into it." The school provides rigorous college preparation that promotes the student's sense of identity, community, personal integrity and values for a productive and satisfying life, and prepares the student to lead and to contribute to society.