Global Health Nexus, Fall 2000

The Magic of Planned Giving

A gift to the NYU Charitable Gift Annuity can help the College and you, just as it did Dr. Oringer. Let’s assume that at age 76 you contribute $100,000 of stock that you had purchased for $2,000. The gift annuity would pay you income at a rate of 8.3 percent (based on your age) for the rest of your life. You would also obtain a substantial immediate income tax deduction, and you avoid capital gains tax. As a result, your income would be much higher than if you had sold and reinvesting in a bond paying income at 7 percent. You can establish a charitable gift annually for a minimum gift of $5,000.

  Charitable Gift
Annuity 8.3%
Sold and
Reinvested 7%
Current Value of Stock $100,000 $100,000
Cost Basis of Stock $20,000 $20,000
Capital Gains Tax (federal, state, and local) None $24,560
Amount Availablefor Reinvestment $100,000 $75,440
Annual Income $8,300 $5,280
Income tax charitable Deduction $46,730 None
Income Tax Saved (50.3%) $23,505 None
Actual Out-of-Pocket Cost $76,495 $100,000
Effective Rate of Return 10.85% 5.28%

The gift annuity income rate is based on the age of the income beneficiary.
The following chart shows some representative rates.

Age/Rate: 60/6.6%, 65/7.0%, 70/7.5%, 75/8.2%, 80/9.2%, 85/10.5%, 90+/12.0 %


We would be delighted to talk with you about the many benefits you can expect from the NYU gift annuity or any of our other life-income charitable gifts. For more information, call Suzanne Ryer, assistant dean for development, at (212) 998-9928