Charitable Gift Annuities
A charitable gift annuity is a simple agreement between a donor or donors and Central Park Conservancy. In exchange for a gift of cash or appreciated securities, the donor(s) receives fixed payments for life. The amount paid depends upon the age, the number of annuitants, the size of the contribution, and when payments begin. You will also receive an income-tax charitable deduction in the year the gift is made, reduced capital gains taxes (if appreciated securities are donated), and the peace of mind that comes from knowing you will receive income for life. An annuity may also enable you to meet your own financial needs while making a more substantial gift to the Park than you thought possible.
- Payments can start immediately or can be deferred. Rates are higher for deferred.
- Payment rate is based on age – the older you are, the higher the rate.
- Minimum size gift for an annuity with the Conservancy is $5,000.
- Annuities can be funded cash or appreciated stock.
- Income beneficiary(s) of an immediate pay annuity must be at least 59 years of age. Income beneficiary(s) for a deferred gift annuity must be at least 55 years of age at the time the agreement is signed.
- A contribution for a gift annuity is irrevocable and cannot be returned to you.
Sample Rates for a Single Life Annuity (as of January 2014)
Age 60 65 70 75 80
Rate 4.4% 4.7% 5.1% 5.8% 6.8% Calculate your own tax savings and income benefits in the box at the bottom of this page.
How a Charitable Gift Annuity works
Dr. Irving Newhill is 75 years old. He used $10,000 cash to establish a charitable gift annuity for the benefit of Central Park Conservancy. He receives:
- guaranteed payments for life at 5.8% ($580 annually)
- $469 of the annual payment is tax free
- a charitable deduction of $4,186
Dr. Newhill could have chosen to defer the income from his gift for 3 years, until he is 78, and it would have increased both the rate of the payments when they began and the deduction he received for his gift. It would look like this:
- guaranteed payments for life at 7.0% ($700 annually)
- $484 of the annual payment is tax free
- the charitable deduction, which he can take in the year he makes the gift, increases to $4,915
For more information and an example of how a gift annuity might work for you, call our Office of Planned Giving at 212.310.6645, or email email@example.com.
*Note: Figures above are based on a gift made in January 2014 and are for illustration purposes only. Central Park Conservancy uses the rates suggested by the American Council on Gift Annuities.