Charitable Gift Annuity
There's a way for you to support New Mexico State University and feel confident that you have dependable income in your retirement years. You can do this with a charitable gift annuity.
This type of donation can provide you with regular payments and allow us to further our work. You can also qualify for a variety of tax benefits depending on how you fund your gift.
If you fund your gift annuity with cash or appreciated property, you qualify for a federal income tax deduction if you itemize. In addition, you can minimize capital gains taxes when you fund your gift with appreciated property.
And now, you can fund your gift using your IRA assets. If you are 70½ and older, you can make a one-time election of up to $53,000 to fund a gift annuity. While your gift does not qualify for an income tax deduction, it does escape income tax liability on the transfer and count toward all or part of your required minimum distributions.
Gifts That Pay
If you are older than 60 or don't need your payments immediately, you can set up a deferred gift annuity.* This allows you to delay receiving payments until a later date—such as when you reach retirement.
* All CGA donors must be at least 70 years old. Deferred Gift Annuities (DCGA’s) will be accepted from donors at least 60 years of age; payout will not begin until payee reaches 70. Eligibility for acceptance of any CGA will be evaluated on a case by case basis.
See How It Works
An Example of How It Works
Dennis, 75, and Mary, 73, want to make a contribution to the NMSU Foundation but they also want to ensure that they have dependable income during their retirement years. They fund a $25,000 charitable gift annuity with appreciated stock that they originally purchased for $10,000.
Based on their ages, they will receive a payment rate of 6.0%, which means that they will receive $1,500 each year for the remainder of their lives. They're also eligible for a federal income tax charitable deduction of $8,792* when they itemize. Finally, they know that after their lifetimes, the remaining amount will be used to support the NMSU Foundation’s mission.
*Based on annual payments and a 5.2% charitable midterm federal rate. Deductions and calculations will vary depending on your personal circumstances.
Your Resources
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Payments for Life
Learn more about the many benefits of a charitable gift annuity in our FREE guide Strengthen Your Future With a Charitable Gift Annuity.
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