Think of it as the gift that gives back

A charitable gift annuity is a solid investment in NJIT’s future and provides a guaranteed income for life (and, if desired, for another beneficiary’s lifetime). Many of our alumni and friends have recognized the mutual benefits that may accrue t them and to NJIT by taking advantage of this method of giving.  Annuities form a valuable part of our growing endowment.  They can be funded with cash or securities.

What are the benefits of giving a Charitable Gift Annuity?

• Guaranteed fixed payments for life, a portion of which is nontaxable
• Charitable income tax deduction for a portion of the gift
• Reduced capital gains taxes
• Support of a program at NJIT
• Reduce capital gains tax
• Membership in 1881 Society

Donor Stories

Click here to find out how other alums, just like you, have benefited from a Charitable Gift Annuity.

Example

Mr. Smith, age 75, decides to contribute $10,000 of the proceeds from a matured CD in a NJIT Gift Annuity. Mr. Smith chooses himself as annuitant and enters into a gift annuity agreement with NJIT. The transaction occurs as follows:

Donor's gift to NJIT	$20,000
Fixed lifetime annuity rate	6.3%
Annual annuity payments	$1260 *
Donor's current income tax charitable deduction	$8975.80

* Under this example, 70% of annual annuity payments are tax-free for 12 years.

The payout rate on an annuity is based on the age of the donor at the time the gift is made.  The rates are suggested by the American Council on Gift Annuities, composed of representatives from educational, religious, and other charitable organizations.  NJIT follows the policies of the American Council on Gift Annuities.

Deferred Charitable Gift Annuity

A deferred charitable gift annuity is similar to a charitable gift annuity except that the payments are deferred to a future date.  A donor may defer payments to years when income is needed more, such as retirement.  The donor obtains a substantial charitable income tax deduction in the year the gift is made.  Because payments are deferred, allowing the principal to grow, the donor enjoys a high payout rate later.

A deferred gift annuity is an excellent way to make a gift and receive a charitable income tax deduction while providing income for the future. 

Summary of Financial Benefits:

• Lifetime income stream – payments are fixed and a portion is nontaxable
• Charitable income tax deduction for a portion of the gift
• Reduced capital gains taxes
• Full campaign credit
• Membership in the 1881 Society

Example

Mrs. Smith, age 50, decides to contribute $20,000 of the proceeds from a money market account in a NJIT gift annuity. Mr. Smith chooses himself as annuitant and chooses to begin receiving payments at age 65. The gift annuity agreement is entered into between the donor and NJIT in September 2009. The transaction occurs as follows:

Donor's gift to NJIT	$10,000
Fixed lifetime annuity rate	9.8%
Annual annuity payments	$1960 *
Donor's current income tax charitable deduction	$6841.60

* Under this example, approximately 34% of the annual annuity amount is tax-free for 20 years.