You may be able to make a charitable gift and increase your annual income, especially if you have low-interest CDs or stocks that pay low annual dividends. There are several different types of income-producing or "life-income gifts". Each has different tax and income benefits. Please review the information regarding each gift arrangement carefully with someone in our gift planning office as well as your own advisors to help you make the best possible decision about which gift is right for you.
Charitable Gift Annuities
In exchange for your gift of cash and/or securities, Vassar agrees to pay you (or someone else) a fixed dollar amount for life. The amount of income will not change. At your death the remaining proceeds from the gift come to Vassar. Your income payment is dependent upon your age (or the age of the named beneficiary) and the size of the gift. The older you are, the higher the corresponding payout rate is.
At Vassar, a beneficiary must be at least 60 years old and the minimum gift amount is $10,000 (Existing gift annuity donors who wish to make additional gifts may do so with just $5,000). Run some sample calculations yourself with our planned gift calculator.
Charitable Remainder Trust
These trusts offer greater flexibility than other arrangements. You can name yourself, yourself and your spouse, children, or other loved ones as the income beneficiaries. Often you can even name more than one remainder beneficiary. For instance, you may choose to have the remainder ultimately split between Vassar and another charity you hold dear. The kind of income that is paid out can be a fixed dollar amount or an amount that varies from year to year. These payments can be made for the beneficiary’s lifetime or for a term. Assets other than cash and securities (such as artwork or real estate) can also be used.
You may select the trustee who will manage the trust and its investments. This may be Vassar, you, a bank, or other financial institution. When Vassar serves as trustee, we utilize the professional investment management service of Kaspick and Company, the leading provider of gift planning services for Colleges and universities. The minimum gift required for a charitable remainder trust managed by Vassar is generally $100,000. Vassar charges no investment management fees and absorbs the costs charged by Kaspick.). Run some sample calculations yourself with our planned gift calculator.
Deferred Payment Gift Annuity
If you want to supplement your future retirement income, you might want to consider the deferred payment charitable gift annuity. You make a gift today but "defer" your income payments until some predetermined future date, often coinciding with your planned retirement. You also realize an immediate income tax deduction in the year you make the gift. At your death, the remaining proceeds from the gift go to Vassar.
The amount of your future payments is dependent upon your age at the time of the gift and the length of time you choose to "defer" the payments. This "deferral" often results in higher payout rates and a higher income tax deduction when compared with the immediate annuity. For these reasons, this kind of arrangement often appeals to 1) younger donors who need the benefit of a current tax deduction, but are also interested in providing for future income needs and 2) older donors who are willing to delay their payments a year or two in order to secure a higher payout rate. Run some sample calculations yourself with our planned gift calculator.
Minimum beneficiary age:
any but must defer the income until 60
Minimum gift amount: $10,000.
Existing annuity minimum contribution: $5,000