Charitable Gift Annuities

Class of 1947“I have always intended to contribute to Princeton in recognition of the excellent student experience, University advice, and scholarships I received.”

-- Raymond F. Beagle Jr. ’47

In this popular charitable giving arrangement, the donor makes a gift of a minimum of $25,000 to Princeton. The University then provides a secure, fixed, quarterly payment for the life of one or two individuals, for example, the donor and spouse.

The minimum age to establish a charitable gift annuity at Princeton is 55 (age 60 for two-life) and the minimum age to start receiving payments is 65 (both annuitants if two-life). For example, a donor can establish a deferred charitable gift annuity at the age of 55 with the payments starting at age 65 (10-year deferral) and receive an annuity rate of 6.4%. The payment, which is fixed for life and backed by a reserve fund and other Princeton assets, is based on a percentage of the gift amount. In most cases, part of each payment is tax-free, increasing each payment's after-tax value.  Princeton’s rates follow the guidelines set by the American Council on Gift Annuities (ACGA). To see basic one- and two-life rates, use our online gift calculator. For more rate options, contact the Office of Gift Planning at 609.258.6318 or by email at 1746soc@princeton.edu.

Donors interested in a higher tax deduction and a larger gift for Princeton may accept a rate lower than the one Princeton offers. The American Council on Gift Annuities makes periodic adjustments to its rate table, and the amount of the IRS tax deduction can vary as well. Charitable gift annuities are not available in Alabama, Hawaii, and Wisconsin.


Benefits

  • Immediate federal income tax deduction+ and capital gains deferral++ on appreciated assets such as stock.
  • You or your designated annuitant(s) will receive fixed payments for life on a quarterly basis.
  • Annuity rate of 4.7% to 9.0% of the gift amount, depending on the ages of the annuitants at the time of gift and the deferral period. 
  • The remainder of your gift will support educational excellence at Princeton University and can be allocated to a specific purpose (certain minimums apply; please speak with a philanthropic advisor in the Office of Gift Planning about gift allocations).

 

        +  Deductions for this and other gifts of cash and non-appreciated property are subject to IRS limitations. Consult with your tax advisor on how the limitations apply to your situation.

   ++  Capital gains are deferred when the donor is also the annuitant; if you name annuitant(s) other than yourself or spouse, capital gains are not deferred.

The information presented on these web pages is not offered as legal or tax advice. You are urged to seek the advice of your tax advisor, attorney, and/or financial planner to make certain any gift you are considering fits well in your specific circumstances.


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