Gifts That Provide Income: Charitable Gift Annuity

A charitable gift annuity is a simple agreement between you and NewYork-Presbyterian Hospital.

The Type of Income You Receive

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A NewYork-Presbyterian gift annuity pays you and/or another beneficiary a fixed annual income for life. Part of your income may be tax-free, increasing the overall return to you, or taxed at the more favorable capital gains rate. Your annuity income payments are backed by the assets of NewYork-Presbyterian.

With an immediate payment annuity, your income payments begin right away. With a deferred gift annuity, your income payments begin at a future date that you specify. Because payments are deferred, you receive a higher annual income, which may be used as a source of guaranteed retirement income.

How it Works

  1. You transfer cash, securities, or other property to NYP.
  2. You receive an income tax deduction and may save capital gains tax.
    NYP pays a fixed amount each year to you or to anyone you name for life. Typically, a portion of these payments is tax-free.
  3. When the gift annuity ends, its remaining principal passes to NYP.
 

Current Charitable Gift Annuity Rates

Here is a sample of the current rates for single-life gift annuities:

Age Current Charitable Gift Annuity Rate
65 4.7%
70 5.1%
75 5.8%
80 6.8%
85 7.8%
90 9%

Calculate the amount you would receive from your annuity.

How You Can Save Taxes

When you establish an annuity, you are entitled to an immediate federal income tax deduction for a portion of your gift. Your deduction is based on the size of your contribution, the annuity payment rate and the age(s) of your income beneficiary(ies). With a deferred arrangement, you receive a higher immediate income tax deduction.

With a gift of appreciated property, you can amortize payments of long term capital gains taxes. You can also realize significant estate tax savings.

How You Can Establish Your Own Gift Annuity

A gift annuity is established with an irrevocable gift of cash or marketable securities. The minimum contribution required is $10,000, and income beneficiaries for both immediate and deferred annuities must be at least 65 years old when payments begin. Your annuity is administered by BNY Mellon at no cost to you.

Note: As you consider any charitable gift plan, please consult with your tax or financial advisor to determine the tax/financial implications for you and your family.

Calculate the benefits of a Charitable Gift Annuity.

Contact

Planned Giving

Telephone: 646-317-7499
Email: legacy@nyp.org