Life Income Gifts
Charitable Gift Annuities
Sometimes referred to as a CGA, a Charitable Gift Annuity is a simple agreement between you and Stevens Institute of Technology. There are only two rules: You may establish a Charitable Gift Annuity with a minimum gift of $10,000, and the annuitant must be at least 65 years of age when the annuity payments begin.
EXAMPLE
Joan, 75, established a $50,000 charitable gift annuity. Based on her age, she was able to receive an annuity rate of 5.8 percent. As a result, Stevens will pay her $2,900 each year for the remainder of her life, of which $2,311 is tax-free to her throughout her life expectancy. She will also receive a charitable deduction of $21,339 if she itemizes while preparing her income tax return (assuming annual payments and a 1.4 percent charitable midterm federal taxation rate). After her lifetime, any remaining amount will be used to support Stevens’s mission of innovation and entrepreneurship.
YOUR BENEFITS
- Fixed annual income at a favorable rate of return for yourself (and/or another person you choose) for life;
- The potential for income appreciation if your gift is funded with low-yielding assets;
- A portion of your annuity income will usually be tax-free;
- Income tax deductions for a portion of your gift;
- Favorable capital gains tax treatment if you fund your gift with appreciated securities;
- Membership in the exclusive Legacy Society.
Charitable Remainder Trusts
There are two types of Charitable Remainder Trusts—a Charitable Remainder Annuity Trust, which pays the income beneficiary a fixed income each year, and a Charitable Remainder Unitrust, which pays a variable income over the life of the trust. The type of trust you choose depends upon your goals and objectives.
The trust can be tailored to meet your needs and objectives, such as generating higher income from assets you currently own, building increased retirement income, or providing financial security for your loved ones.
YOUR BENEFITS
Some of the benefits of Charitable Remainder Trusts include:
- The flexibility of using cash, appreciated securities, or other assets to fund a Trust
- Potentially increased income
- Income tax deductions for the future gift to Stevens
- Avoidance of capital gains taxes if appreciated assets are used to fund the Trust
- Maximum flexibility for the donor with respect to:
- Income recipients – you may choose yourself, and/or family members or friends
- Time period of the trust – may be structured for en entire lifetime, or for a specified number of years
- Level of income – You, as donor, choose your payout rate
- Type of income – You may choose a fixed or variable income plan
- Making a significant difference to Stevens in the areas you wish
Gift Calculator
Do you want to know more about how a planned gift would work for you? Use our online gift calculator for specifics about Charitable Gift Annuities and Charitable Remainder Trusts.
Contact Information
For answers to your estate and gift planning questions, please contact Michael Governor, Director of Planned Giving, at (201) 216-8967 or michael.governor@stevens.edu.
