Your rate of return is based on your age at the time the annuity is established. This rate is guaranteed, no matter how long you live or what happens to the economy. Joint annuities can be established at slightly lower rates to provide you and a beneficiary with income. Cornell University offers charitable gift annuities as a service to its alumni and friends who ultimately want to make a generous gift to Cornell, but who need income from their investments now. This type of annuity brings you secure income at a high rate of return, many tax advantages, and the satisfaction of assisting a great university.
Many investors use appreciated stock to establish gift annuities.
Your payment and your charitable income tax deduction are based on the full fair-market value of the stock at the time you make your gift. Your annual income is locked in, no matter what happens to the price of your stock after you give it to Cornell. Taxes will eventually be due on approximately half of your long-term capital gains, but are spread over your life expectancy. Some of your annuity income will be tax free. You can designate your gift to benefit any Cornell program or priority.