Transforming Investment Opportunities Through a Charitable Gift
market uncertainties create a dilemma for many investors. If you
have held stock over the long term, you may still have paper profits.
If you wish to sell shares now and reinvest, you will lose much
of your investment to the capital gains tax. And it wont be
easy to find an investment that pays high income in this market.
But there is
a charitable alternative that saves taxes and returns a high level
of income to you. Instead of selling your stock, consider making
a gift to support the Colleges Transformations campaign through
the NYU Charitable Gift Annuity. NYU will pay you a high level of
income. You avoid capital gains taxes and obtain an immediate income
tax deduction. And your entire gift will work to earn a high level
of income for youand ultimately support the future of the
College of Dentistry.
if at age 76 you contribute to the College $100,000 of stock that
you had purchased for $20,000, the NYU gift annuity will pay you
income of $8,000 for the rest of your life (the annuity rate is
based on your age). This annuity rate is much higher than current
market rates for bonds and CDs. The following chart compares
the advantages of the Charitable Gift Annuity with the income and
tax results of selling the stock and reinvesting the proceeds in
a bond that pays income at 6%.
Gift Annuity 8%
and Reinvest: Bond 6%
Gains Tax (20%)
You can establish
a Charitable Gift Annuity with a gift of as little as $5,000. NYU
life-income gifts can be designed to accommodate a wide variety
of financial needs and objectives. We invite you to talk with us
about how a life-income gift can work for you. For more information,
call Alan Shapiro, Esq., Director of Gift Planning, at (212) 998-6960.