Your charitable deduction is based on the full market value of the assets you gave, minus the present value of the income interest you retained. The higher the income payout, the lower the deduction.
These flexible, creative gifts address a variety of your planning objectives. For our part, the return of income allows you to consider a more substantial gift to us than you might be able to afford in an outright format. Even though we cannot use these gifts until the death of the last income beneficiary, they give us long-term financial strength that will sustain us in the future. Our convenient gift calculator can quickly show how these types of plans can be most beneficial to you.
A charitable gift annuity is a simple contract between you and TCNJ Foundation that pays you a fixed dollar amount (an annuity) for your lifetime and , if desired, that of another individual, based upon your age (s) at the time of your gift. The older you are, the higher the annuity rate. If you use appreciated property, such as stocks, to fund the gift annuity, you will lessen the capital gains tax on the gift portion of the transaction and the remaining gain will be apportioned over your lifetime. This is a wonderful way to increase income from stocks that pay small dividends and carry heavy capital gains.
A deferred charitable gift annuity offers current tax benefits but delays the income until you reach a specified age. In exchange for agreeing to defer your income for a period of time, you will receive a higher annuity rate, depending on your age and length of the deferral period. If you are considering a gift annuity, but do not need the income immediately, you may wish to compare the benefits of a deferred gift annuity to determine which method is most advantageous.
Another variation is the flexible deferred charitable gift annuity. With this plan, you do not have to choose a date to begin payments in advance. You can elect to wait a period no sooner than 2 years, but no more than 20 years.
A “Parent” Charitable Gift Annuity
This annuity provides an immediate charitable deduction for you and we send the annuity payments to your parent(s) for the rest of their lives. You provide them with a tax free gift (under most circumstances) and avoid the potential awkwardness of giving them money – TCNJ Foundation is providing the payments. The annuity rate is based upon their age(s), not you so the rate is higher, resulting in a larger payment they receive. Upon maturity, you can designate the gift to be a memorial to your parent(s) – a thank you for helping you attend TCNJ (or TSC) as a student.
A charitable remainder trust is a trust that will pay the donor (and one or more other named beneficiaries, if desired) a specified annuity income either for life or for a period of time not to exceed 20 years.
A charitable remainder unitrust or CRUT has many of the same attributes as CRAT, but with more flexibility and planning opportunities.