DEFERRED CHARITABLE GIFT ANNUITIES

The Deferred Charitable Gift Annuity is a form of charitable gift annuity that will pay you, you and your spouse, or another individual you designate a fixed annual income starting at least one year after you establish the gift.

The Deferred Charitable Gift Annuity is an ideal choice for younger donors or those who have not yet retired, providing a tax deduction now and tax-favored retirement income later. Such a deferred investment can supplement other tax-sheltered investment plans, such as IRAs, 401(k)s, 403(b)s, or Keogh plans. And if you donate appreciated securities instead of cash, you may be able to reduce your capital gains tax liability as well.

• You receive a fixed annuity starting at a future date you have selected. When you defer the payment date, the rate to which you will be entitled may be considerably higher than if you began taking payments immediately.

• The annuity rate is calculated based upon your age(s) and the length of the deferral period. The longer you defer the payments, the higher your annuity rate will be.

• If you defer until retirement, you will receive income when you will likely be in a lower tax bracket than your current one. Therefore, you will retain a greater portion of the payments after taxes.

• You will be entitled to a current charitable gift income tax deduction for the year you establish the DGA. The amount of your deduction is equal to the present value of the charitable portion of your gift and is determined by the applicable federal discount rate when the gift is completed, the deferral period and your age(s) at the time of the gift.

For more detailed information about Deferred Charitable Gift Annuities, please contact the Director of Gift Planning by phone at 212-404-3677 or 800-422-4483, or by e-mail to: plannedgiving@med.nyu.edu.