For Your Consideration: Charitable Gift Annuities

June 2nd, 2020 / Gift Planning

You have until June 30 to lock-in a higher charitable gift annuity rate. The American Council on Gift Annuities, the national organization that sets gift annuity rates, has announced payout rates will decrease .3 to .5 percent as of July 1, 2020.

Charitable gift annuities are easy to set up and provide a guaranteed fixed payment to you (and your spouse/beneficiary) for life — regardless of market conditions. You can choose to start lifetime payments immediately or defer the start of payments for a higher rate. When funded with appreciated stock, lifetime payments are generated on the full market value without immediate reduction for capital gains. Gifts funded with cash in 2020 may be eligible for extra tax benefits through the CARES Act. Through the Annual Giving Legacy program, gift annuities (immediate-pay or deferred) at the required threshold can be credited to your next major reunion campaign and support your class’s Annual Giving in perpetuity with a named endowment fund.

Even if you are not celebrating a major reunion this year, you can still take advantage of the higher rates by setting up a gift annuity today and Princeton will recognize your gift at your next major reunion, even if it is a few years from now.

Lock-in at the current higher rates until July 1, 2020:

Access our online gift calculator and learn more about the Annual Giving Legacy program. To see the many options available, receive a custom illustration, or get more information contact Gift Planning at 609-258-6318 or email 1746soc@princeton.edu.

State tax rules vary. Please consult your professional advisers to discuss your specific situation.