Gifts that Provide Income
Charitable Gift Annuities
If your goal is to receive a fixed income for life and enjoy significant tax benefits, spread capital gains liability over a number of years and make a significant gift to Teachers College, a charitable gift annuity is a very good option.
A Charitable Gift Annuity is a simple contract between you and Teachers College. In return for your gift, Teachers College agrees to pay one or two people a fixed, quarterly payment (determined by actuarial tables) for the rest of their lives. This is an ideal and manageable vehicle for supplementary income for retirement planning.
Immediate and Deferred Annuities start at $10,000 and payments can be directly deposited into your account. Upon the death of the last beneficiary, the remaining funds go to the TC endowment to be used according to your wishes.
There are two types of Charitable Gift Annuities:
- Immediate payment - can be created starting at age 65. Payments begin at the end of the first quarter after it is established.
- Deferred payment - can be created starting at age 45 with payments to start at age 65 or later. The rate you receive when payments begin is higher than if you waited until 65 to establish the annuity. You receive the charitable deduction in the year you establish the annuity.
Income and Benefits for You
The rate of payment is fixed for life and is based on your age when the annuity is established. Click for current age rate payment information. Part of your annual income is tax-free and, if you fund the annuity with appreciated securities, your capital gains liability is spread over a number of years, rather than all at once. In addition, you will receive a charitable tax deduction for a portion of the gift amount when the annuity is established.
Pooled Income Fund
If your goal is to receive a variable income for life, avoid capital gains liability on appreciated equities and make a significant gift to Teachers College, the Pooled Income Fund is an option.
How it works
TC's Pooled Income Fund works very much like a mutual fund. Gifts from donors are combined into a single fund and the quarterly payment to the donor is based on their proportional share of the fund's return. Payment can be to you and/or another person. Pooled Income Fund shares start at $10,000 and quarterly payments can be directly deposited into your account.
Income and Benefits for You
The quarterly rate of return on the Pooled Income Fund varies according the fund's investment performance. If you use appreciated stock, this vehicle helps you eliminate the capital gains liability as the gift is based on the current market value of the shares donated. Annual income is not considered tax-free but you do receive a charitable tax deduction equal to the gift's remainder value to TC.