The Sandhills Gift Annuity Program
The Sandhills Charitable Gift Annuity Program provides an opportunity for friends of Sandhills to support the college while receiving a lifetime income. The Gift Annuity is an astute way for you to retain the lifetime benefits of your gift while making a legacy gift to the mission of Sandhills Community College.

What is a Gift Annuity and how does it work?
A Charitable Gift Annuity is a simple contract between you and the Sandhills Community College Foundation (SCC Foundation). In exchange for your irrevocable gift of cash or marketable securities, the SCC Foundation agrees to pay one or two named annuitants a fixed annual sum, in quarterly installments, for life. This payment is guaranteed by the assets of the SCC Foundation. The older the designated annuitants are at the time of the gift, the greater the income the Foundation can agree to pay. For example, under current guidelines, an 80 year old annuitant would receive an 8% annual annuity, while a 60 year old annuitant would receive 6%. Where there are joint annuitants, the rate would be lower. Because part of the annuity payment is typically a return of principal, part of each payment is tax-free, thereby increasing the annuity's after-tax value. Upon termination of the payments, the remaining principal attributed to your gift is used by the SCC Foundation for the benefit of Sandhills Community College.
How can the Charitable Gift Annuity benefit you?
• Income - you and a named annuitant can receive a guaranteed, fixed lifetime income from Sandhills.

• Capital Gains - If you fund your gift annuity with appreciated stock, you will pay capital gains tax on only part of the appreciation. Additionally, if you name yourself as the annuitant, the partial capital gains tax will be spread out over many years rather than all being due in the year of your gift.

• Current Income Tax Deduction - A portion of your gift is deductible in the year of your gift, based upon the ages of the annuitants.

• Increased Income - If you own assets producing low income, you can increase your return from the assets through a Charitable Gift Annuity.

• Estate Tax Savings - Your estate may enjoy reduced probate costs and estate taxes.

• Support for Sandhills - Your gift will provide valuable future support to Sandhills Community College.

What determines the amount of the annuity payment?
As previously indicated, the amount of the annuity payment depends upon the age(s) of the annuitants. The Sandhills Community College Foundation uses the rates set by the American Council on Gift Annuities. Our development staff would be happy to create a sample gift scenario for you which would show the annuity rates you would receive and all the accompanying tax information.

An example of how the Gift Annuity works:
A donor, age 70, irrevocably transfers appreciated stock worth $25,000 to the SCC Foundation to fund a Gift Annuity which names both he and his wife (also age 70) as lifetime annuitants. The couple will receive 5.9% of their gift equaling $1,475.00 annually, for the rest of their lives. Assuming the original cost of the stock was $10,000, approximately $192 of this payment will be tax free, another $657 will be taxed at the capital gains rate, and the balance of approximately $626 will be taxed as ordinary income. The couple receives an immediate tax deduction of $7,581. The couple will be recognized for their gift as Legacy Benefactors of Sandhills Community College.

To use the on-line “Gift Calculator” to create an example of your own gift annuity please click here.

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Donnie Whicker, 2002 graduate of the Sandhills culinary arts program, is the executive chef at Pine Needles Resort and Golf Club. He is responsible for the outstanding cuisine presented to members and guests.