Gifts with Lifetime Income

To get detailed information about gifts with lifetime income including Charitable Remainder Trusts, please e-mail Fordham's Office of Gift Planning, giftplanning@fordham.edu.

For an introduction to Charitable Gift Annuities, please tell us:
Are you under age 65?
Or over age 65?
Under age 65

If you are under age 65, you may want to consider establishing a Deferred Gift Annuity for Fordham. A Deferred Gift Annuity may permit you to make a generous gift to the University now with payments to you or someone you designate deferred until some future date, for example, your planned retirement date. The advantages of this type of gift are both higher payment rates and, in most cases, a higher portion of the gift deductible for income tax purposes.

Because payments are deferred, the payout rate for a Deferred Gift Annuity is higher than for a Gift Annuity providing immediate payments. For example, a donor age 60 would receive payments of 5.7% on a Gift Annuity on which he was sole beneficiary and immediate payments were arranged. If payments were deferred 5 years, they would be in excess of 7%. Please contact Fordhams Office of Gift Planning for information on your specific situation.

Deferred Gift Annuities pay a fixed amount to one or two beneficiaries beginning at a future date. The interest rate on the Deferred Gift Annuity which determines the annual payment varies according to the age and number of the beneficiary(ies) and the time between the date of gift and the date annuity payments begin. Payments can be made quarterly, semi-annually or annually. The minimum for a Fordham Deferred Charitable Gift Annuity is $10,000.

If the Annuity is payable to the donor (as opposed to someone else), the donor does not report any capital gain immediately on establishing the Annuity with appreciated securities. Instead, a relatively small part of the annuity payments is taxed to the donor as capital gain. Most of the appreciation on the securities ends up not being taxed to the donor.

Since Deferred Gift Annuities are irrevocable, they are credited as a gift to Fordham's Campaign at full current value. Upon the death of the beneficiary(ies), the principal in the annuity goes to Fordham.

Over age 65

Charitable Gift Annuities have become popular vehicles for philanthropic people over age 65. This may be because the interest rate on the Gift Annuity which determines the annual payment increases with the age of the beneficiary(ies).

There are other advantages offered by Charitable Gift Annuities:

• Since a portion of the Gift Annuity payments is tax-free and (if appreciated securities are used to fund the gift) a portion is taxed at Capital Gains Tax rates (15%, compared to 35%, the top tax bracket for ordinary income tax rates), taxation for Charitable Gift Annuities is favorable compared to many other sources of income.
• If long-term appreciated securities are used to fund the gift, no immediate Capital Gains Tax is incurred. The Capital Gains Tax owed is spread out over the life of the gift. Yet you will receive payments and a charitable income tax deduction based on the full current value of the securities. (The amount of the charitable income tax deduction is calculated by IRS formulas and is equal to the present value of the gift, usually 30 to 50% of the full current value.) The minimum for a Fordham Charitable Gift Annuity is $10,000.
• Many areas of philanthropic interest at Fordham can be funded with Charitable Gift Annuities. A very popular area is scholarships. Please contact the Office of Gift Planning to discuss your area of interest at the University.

EXAMPLES OF FORDHAM UNIVERSITY CHARITABLE GIFT ANNUITY RATES