A charitable gift annuity provides fixed payments for life in exchange for a gift of cash or securities to St. Lawrence University. Gift annuities are easy to set up and the payments you receive are backed by the general resources of St. Lawrence University.
A charitable gift annuity could be right for you if:
You want to maintain or increase your cash flow.
You want the security of fixed, dependable payments for life.
You want to save income taxes or capital gains taxes.
You would like income that may be partially tax-free.
You are considering a gift amount of $10,000 or more.
You are at least 50 years of age.
How Your Gift Helps Your gifts to the University help to make it possible for current and future Laurentians to have the St. Lawrence experience through financial aid, as well as critical resources for new academic initiatives such as...
Providing the best possible education for today’s world...
Learning that occurs both inside and outside the classroom...
and improved infrastructure and learning technologies.
Because everyone’s situation is different, we encourage you to seek professional legal, estate planning, and financial advice before deciding on a course of action. This information does not constitute legal or financial advice and should not be relied upon as a substitute for professional advice.
A simple contract A charitable gift annuity is a simple arrangement between you and St. Lawrence University that requires a one or two page agreement. There are minimal or no costs to you to establish the arrangement and no costs at all to maintain it.
Irrevocable gift A charitable gift annuity is an irrevocable arrangement. Once you transfer assets in exchange for the gift annuity, you cannot change your mind and get the assets back. This requirement assures that whatever is left of your gift when the gift annuity ends will go to support St. Lawrence.
Fixed payments for life In exchange for your irrevocable gift of cash, securities, or other assets, St. Lawrence will pay you a fixed amount each year for life. The amount of the payment depends on the amount donated and the age of the payment recipient.
Payments last for your lifetime. You cannot outlive your payments.
Payments are predictable. Your payments will not be affected by investment performance or market conditions. You will get the same amount each year.
Payments are very secure. They are backed by the general resources of St. Lawrence University, not just by the assets you donate.
Tax-advantaged payments Part of each payment typically will be tax-free for many years. This tax-free portion makes the payments more valuable than an equal amount of fully taxable income. The amount of this tax-free portion will be greater if you give cash than if you give stock or other appreciated property.
Who can receive payments? You decide who will get the payments from your gift annuity. Usually, this will be you, or you and your spouse. You can, however, select any one or two people to receive the payments from your gift annuity. For example, you may wish to provide income for parents, a sibling, or a faithful employee.
Payout rate depends on age The older you are when you make your gift, the greater the payment rate you will receive. If you choose other people to receive the payments from your gift annuity, their ages at the time of your gift will determine their payment rate. Our minimum age is 50.
Sample Annuity Rates
Tax benefits You will earn an immediate income tax charitable deduction in the year of your gift, providing tax savings if you itemize. The amount of this deduction will depend on several factors. If you cannot use the entire deduction that year, you may carry forward your unused deduction for up to five additional years.
If you give stock or other appreciated property to create a gift annuity, you will pay tax on only a portion of your capital gain in the property. Even better, if you are the payment recipient of your gift annuity, you will be able to report this capital gain in installments over many years. In this case, your capital gain income will replace some of the tax-free portion you would receive if you were to give cash.
By removing the gift assets from your estate, you may also reduce future estate taxes and probate costs. The amount of these savings will depend on the size of your estate and on estate tax law in force at the time your estate is settled.
Assets to consider Cash currently held in a savings account, bank CD, or money-market fund makes an excellent funding asset. Usually, a gift annuity will provide you with larger payments than any of these investments.
Securities, especially highly-appreciated securities that you have owned for one year or more, are also an excellent funding asset. Giving them to us in exchange for a gift annuity will allow you to unlock their value to increase your cash flow and avoid substantial capital gains tax at the same time.