A gift to the NYU Charitable Gift Annuity can help the College and you, just as it did Dr. Oringer. Let’s assume that at age 76 you contribute $100,000 of stock that you had purchased for $2,000. The gift annuity would pay you income at a rate of 8.3 percent (based on your age) for the rest of your life. You would also obtain a substantial immediate income tax deduction, and you avoid capital gains tax. As a result, your income would be much higher than if you had sold and reinvesting in a bond paying income at 7 percent. You can establish a charitable gift annually for a minimum gift of $5,000.
| Charitable
Gift Annuity 8.3% |
Sold
and Reinvested 7% |
|
| Current Value of Stock | $100,000 | $100,000 |
| Cost Basis of Stock | $20,000 | $20,000 |
| Capital Gains Tax (federal, state, and local) | None | $24,560 |
| Amount Availablefor Reinvestment | $100,000 | $75,440 |
| Annual Income | $8,300 | $5,280 |
| Income tax charitable Deduction | $46,730 | None |
| Income Tax Saved (50.3%) | $23,505 | None |
| Actual Out-of-Pocket Cost | $76,495 | $100,000 |
| Effective Rate of Return | 10.85% | 5.28% |
| The
gift annuity income rate is based on the age of the income beneficiary.
The following chart shows some representative rates. Age/Rate: 60/6.6%, 65/7.0%, 70/7.5%, 75/8.2%, 80/9.2%, 85/10.5%, 90+/12.0 % |
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We would be delighted to talk with you about the many benefits you can expect from the NYU gift annuity or any of our other life-income charitable gifts. For more information, call Suzanne Ryer, assistant dean for development, at (212) 998-9928
