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Charitable Gift Annuities
How Does It Work?
In exchange for a gift, Stanford agrees by contract to pay a fixed amount each year to one or two beneficiaries (the annuitants) for life.
The amount of the annuity payment will depend on the ages of the annuitants and the value of the assets donated. Stanford offers the rates that are suggested by the American Council on Gift Annuities, a national organization. Upon establishing a charitable gift annuity, you are entitled to a current income tax deduction for a portion of the value of the assets given to fund the charitable gift annuity.
For current charitable gift annuity rates and more information, please contact the Office of Planned Giving. Please note that regulations prevent Stanford from offering gift annuities to residents of certain states, including Florida, Hawaii, Maryland, New Jersey, New York, and Washington.
- Receive fixed annual payments for life
- Possibly receive tax-free income
- Diversify some of your portfolio to produce a fixed income for you, backed by Stanford's assets
- Federal, and possible state, income tax charitable deduction
- Reduce or eliminate estate taxes
- Make a gift to Stanford
This Might Interest You If...
You want to make a gift to Stanford and you:
- Want to receive a fixed income annually for life
- Have assets that you are able to give away. Assets that work especially well include:
- Cash or funds earning low interest rates
- Appreciated securities
- Have a large part of your portfolio in one company and want to diversify your investments
- Want to reduce your current income taxes with an income tax charitable deduction
Assets Used and Minimum Gift
A gift annuity is usually created using cash or securities. Stanford has a minimum gift of $20,000 to establish a charitable gift annuity.
The Option of a Deferred Charitable Gift Annuity
You may also create a deferred charitable gift annuity, taking a tax deduction in the year of the gift but delaying the first annuity payment for one or more years. This approach can offer dependable retirement income beginning at a future date. The annuity rates for a deferred charitable gift annuity will depend on several factors, including the length of the deferral period.
Creating a charitable gift annuity will qualify you for membership in Stanford’s Founding Grant Society, which recognizes those who have made planned gifts to Stanford.
If you are interested in learning more about creating a Stanford gift annuity, please contact us. We would be happy to provide you with information about how a charitable gift annuity would work for you based on your circumstances.
Those considering a planned gift should consult their own legal and tax advisors. The staff in the Office of Planned Giving are happy to speak with advisors as well.
Example of a Charitable Gift Annuity
Jane Brown, age 75, makes a cash gift of $100,000 to Stanford this year in exchange for a charitable gift annuity. She will receive annual payments of $5,800 from Stanford for the rest of her life. She is entitled to an income tax charitable deduction for current income tax purposes of about $41,000 (based on an IRS discount rate of 1.2%). Assuming Mrs. Brown is in the 35% federal income tax bracket for ordinary income and can use up the entire deduction, she will save about $14,350 in income taxes. Of the $5,800 she receives each year, only $1,044 will be taxed at ordinary income rates, and $4,756 per year will be tax-free for 12 years.
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