Charitable Gift Annuities

In return for a donation to UJA-Federation of New York, you can receive a lifetime annuity — a fixed amount of income with a potential for favorable tax benefits. With a range of gift options that will be affected by the donor’s age and the type of donation, our professionals can work with you to help create a charitable gift annuity that will meet your philanthropic goals.

• Potential returns of up to 11.5 percent.
• Payments begin at age 65 — annuitants 65 and older receive immediate income.
• Fixed, quarterly income for the donor’s lifetime.
• Portion of income may be received tax-free.
• Cash or other marketable securities can be used to fund the gift annuity.

How It Works

In return for a gift to UJA-Federation, a donor is paid a fixed amount of income on a regular basis, beginning at age 65.  A portion of the gift qualifies for a current income-tax charitable deduction, thereby reducing taxes, and the full value of the gift is removed from the donor's estate. In addition, part of the annuity payment may be received as tax-free income.

Before Age 65
For people younger than 65, these annuities can be purchased periodically to build a primary or supplementary tax-advantaged retirement plan.

After Age 65
If the Charitable Gift Annuity is purchased by a donor who has already reached age 65, the donor will start to receive annuity income immediately, based on the annuity rate applicable to the donor’s age on the date of the agreement.

Charitable Gift Annuity in Action

A donor, age 75, enters into a Charitable Gift Annuity agreement designating UJA-Federation or one of its beneficiary agencies to be the recipient of the charitable portion of her $10,000 cash gift. Based on the annuity rate of 7.3 percent for a person age 75, the donor receives income payments of $730 in each full year for the rest of her life (payable in quarterly payments of $182.50 each). A portion of each payment is received by the donor as ordinary income and a portion is received tax-free. In addition, the gift provides the donor with a current income-tax charitable deduction of approximately $3,530, and the full value of the $10,000 gift is removed from the donor's estate for estate-tax purposes.

The Charitable Gift Annuity enables the donor to enjoy substantial financial benefits and serves as a viable alternative to current low-yielding investments.

Download a Charitable Gift Annuity application (PDF).