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Charitable Gift Annuity—Immediate Payment

To establish a charitable gift annuity, you make a gift to NYU Langone and in exchange receive a fixed annual dollar amount for life. The principal remaining at your death will then benefit NYU Langone.

Immediate-Payment Charitable Gift Annuity Diagram

Benefits

  • Payments for life that are favorably taxed
    1. When gift is funded with cash, part of payment will be tax-free
    2. When gift is funded with appreciated property, part will be taxed as capital gain, part will be tax-free, and part will be taxed as ordinary income
  • Federal income-tax deduction for a portion of your gift
  • Gift will provide generous support for NYU Langone

How It Works

  1. Transfer cash or other property to NYU Langone
  2. NYU Langone agrees to make payments for the life of one and up to two annuitants (payments are backed by our entire assets)
  3. The balance of the transfer inures to NYU Langone

NYU Langone Health Guidelines for Charitable Gift Annuities

  • The minimum gift amount is $10,000.
  • The maximum gift amount is $250,000.
  • The minimum age of a life-income beneficiary for a single-life CGA is 70.
  • For a two-life gift annuity the minimum age of the younger life-income beneficiary is 65. 
  • For a deferred-payment charitable gift annuity the minimum age of any life-income beneficiary is 65 at the date of contribution and 70 at the date of the first deferred payment.

While gift annuities can be funded at a younger age, this type of gift might be especially attractive if you are aged 70 or older, you want to support NYU Langone, and you would like to secure an immediate stream of income for yourself or for yourself and your spouse. The amount of the payments is based on the age(s) of the income beneficiary(ies). The older one is, the higher the payout rate one receives. In addition to the stream of fixed payments, the gift will also generate an immediate charitable income-tax deduction. If you are younger and you wish to begin receiving payments at a future date, a deferred-payment gift annuity might be a more suitable gift arrangement.

Example: Anne Bateman, aged 78, gives $25,000 in cash to NYU Langone in exchange for a gift annuity. She receives an income-tax deduction of approximately $11,713, based on her age. She will begin receiving income checks of $1,600 each year for the rest of her life. When she passes away, the remaining principal will benefit NYU Langone.

Pointer: The charitable gift annuity is especially rewarding if funded with appreciated long-term securities that generate little or no income. If you transfer such securities to NYU Langone in exchange for a charitable gift annuity, you will avoid a significant amount of capital-gain taxation and any remaining capital gain will be reported in prorated amounts over the life (or lives) of the beneficiary(ies).

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Disclaimer: The information provided is general in nature and may not apply to all individuals. This information does not constitute legal or tax advice. We urge you to consult with your personal tax, financial, and legal advisors concerning the specific consequences of making gifts to NYU Langone Health. We would be pleased to discuss, in confidence, ways in which you may support NYU Langone Health.