“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 at least $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 (CGA) at Princeton is 55 (60 for a two-life CGA) and the minimum age to begin receiving payments is 65. For instance, a donor could establish a deferred charitable gift annuity at the age of 55 with the payments starting at age 65 (a 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 always tax-free, increasing each payment's after-tax value. Princeton follows the rates set by the American Council on Gift Annuities (ACGA).
Donors interested in a higher tax deduction and a larger gift for Princeton may accept a rate lower than that which Princeton offers. The ACGA makes periodic adjustments to its rate table, and the amount of the IRS tax deduction varies over time as well. While charitable gift annuities are not available in Alabama, Hawaii, or Wisconsin, donors in these states may be able to create a gift annuity benefiting the University through outside service providers; please call the Office of Gift Planning for further information.
- Immediate federal income tax deduction+, as well as a reduction and deferral of capital gains taxes++ on appreciated assets such as stock
- You or your designated annuitant(s) will receive fixed payments for life on a quarterly basis
- An annuity rate of 4.7% to 9.0% of the gift amount, depending on the age(s) of the annuitant(s) at the time of gift and the deferral period
- The remainder of your gift will support educational excellence at Princeton and can be allocated to a specific purpose (certain minimums apply; please speak with 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 taxes are deferred when the donor is also the annuitant; if you name annuitant(s) other than yourself or your spouse, capital gains taxes 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.