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 |
|Sold and |
|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|
|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