Life Income Gifts
These gifts provide a donor with income for life, while allowing the donor to make a significant gift to the Foundation. Depending on the donor's investments, these gift methods may provide a higher rate of return than the donor is currently receiving.
The gifts may also provide income, capital gains and estate tax benefits to the donor as specified by law. Charitable gift annuities provide a guaranteed income to the donor for life, based on the donor's age at the time of the gift. For instance, the current pay out for a donor, age 75, creating a gift annuity would be 7.9 percent, a much higher rate than provided by many other sources of income.
Charitable gift annuities have several appealing benefits.
The donor receives a guaranteed income for life, with a portion of that income non-taxable; a significant portion of the gift is a charitable gift tax deduction; and, if the gift is made with appreciated securities, the donor avoids capital gains taxes. Charitable remainder trusts also provide lifetime income and charitable tax deductions to the donor. However, using this method, the donor chooses the rate of income, usually between five and seven percent.
The amount of the charitable income tax deduction is inversely proportional to the amount of income paid to the donor. There are two types of charitable remainder trusts:
- guaranteed fixed-dollar amount regardless of performance
- percentage of the trust's fair market value as determined annually
Contact Information
For more information about how to make a gift please contact:
Anne Whitmore Hansen
Vice President for Institutional Advancement
Executive Director Plattsburgh College Foundation
State University of New York College at Plattsburgh
101 Broad St., Hawkins Hall Room 107, Plattsburgh, NY 12901
Phone: (518) 564-2090
Toll-Free: (800) 964-1889
Fax: (518) 564-2089
E-mail: giving@plattsburgh.edu
