Charitable Gift Annuity

A charitable gift annuity allows you to make a gift and receive a steady income stream, claim a charitable tax deduction, and support Tufts. Your fixed annual payments are backed by the assets of the university.

Who says there are no benefits of aging? The older you are, the higher greater your income rate! A gift annuity pays you, or up to two people you name, fixed income for life. Of all life income gift options, charitable gift annuities are the simplest and most affordable.

If you are under 60 years of age, you may want to consider a deferred charitable gift annuity. A deferred charitable gift annuity allows you to make a gift now and delay the payments until you need them. Deferred gift annuities are a great way to supplement your income during retirement while you enjoy the tax benefits now.

What makes gift annuities so popular?

• Charitable gift annuities are easy to create—the agreement is a simple contract between you and the university.
• Your charitable gift annuity may be funded with a gift of $10,000 or more.
• Your annuity payments may be treated as part tax-free income.
• You receive an immediate charitable tax deduction for a portion of your gift.

How it works

	You transfer cash or securities to Tufts.
	Tufts pays you, or up to two annuitants you name, fixed income for life.
	The principal passes to Tufts when the contract ends.

Benefits:

• When you create a charitable gift annuity, you will receive an immediate charitable income tax deduction for a portion of the amount you contribute. The deduction is based on the fair market value of the assets you contribute less the present value of the payments made to you and/or the beneficiary you name.
• If you fund your charitable gift annuity with appreciated securities, no up-front capital gains tax is due.
• Only a portion of your capital gains will be reportable, and the tax will be spread out over your annuity payments.

A charitable gift annuity is for you if...

• You want to make a significant gift to Tufts and receive lifetime payments in return.
• You want the security of fixed payments that won't fluctuate during your lifetime.
• You appreciate the safety of your payments being a general financial obligation of the institution.

Sample annuity rates

Your annuity rate is based on your age. The older you are, the greater your payment. A gift annuity can pay you, or up to two people you name, fixed income for life. Tufts’ annuity rates are based on guidelines established by the American Council on Gift Annuities (ACGA).

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Gift example

You hold a long-term stock portfolio that has appreciated, but only pays you 2% income per year. You are now 75, and you are concerned that if you sell some of the stock to reinvest in bonds, capital gains taxes will cut heavily into the proceeds. You want to make a gift of $100,000 of stock to Tufts, but you need the income that your portfolio provides you.

You are looking for a gift plan that will continue this income and increase it, if possible.

Here's a summary of the income and tax benefits from this gift annuity:

This example is based on a factor that is subject to change. Please contact our office for a personal illustration based on current rates.