Alumni & Friends of SUNY Plattsburgh

 

Life Income Gifts

Life income gifts such as a charitable gift annuity and a charitable remainder trust provide a donor with income for life, while allowing the donor to make a significant gift to the Foundation after their death or the death of their spouse. Depending on the donor's investments, these gift methods may provide a higher rate of return than the donor is currently receiving. Life income gifts may also provide income, capital gains and estate tax benefits to the donor as specified by law.

Charitable Gift Annuities

Charitable gift annuities provide a guaranteed income to the donor for life, based on the donor's age at the time of the gift. For instance, the current payout for a donor, age 75, creating a gift annuity would be 7.9 percent, a much higher rate than provided by many other sources of income.

Charitable gift annuities have several appealing benefits. The donor receives a guaranteed income for life, with a portion of that income non-taxable; a significant portion of the gift is a charitable gift tax deduction; and, if the gift is made with appreciated securities, the donor avoids capital gains taxes.

Charitable Remainder Trusts

Charitable remainder trusts also provide lifetime income and charitable tax deductions to the donor. However, using this method, the donor, in consultation with the college, chooses the rate of income, usually between five and seven percent. The amount of the charitable income tax deduction is inversely proportional to the amount of income calculated to be paid to the donor over their lifetime. There are two types of charitable remainder trusts:

  • Charitable Remainder Annuity Trust pays a fixed dollar amount annually. This works well if you want reliable income.
  • Charitable Remainder Unitrust pays you a variable amount equal to a stated percentage of the net fair market value of the trust assets as recalculated yearly. Depending on the investment performance of the unitrust, this option may provide a possible hedge against inflation.
 
 

Contact Information

Office of Alumni Relations
Hawkins Hall Room 113
101 Broad Street
Plattsburgh, N.Y. 12901-2681

Phone: (518) 564-2090 or (800) 964-1889
FAX: (518) 564-2094
Email: alumni@plattsburgh.edu