Definition
A SUNY Potsdam charitable gift annuity is a contract between the donor(s) and the Potsdam College Foundation that guarantees fixed income payments to one or two beneficiaries for life.
Minimum Gift and Beneficiary Age(s)
The minimum amount to create a first charitable gift annuity is $10,000. Most annuities are created with cash and/or publicly-traded appreciated stock held longer than one year. Income beneficiaries must be at least 60 years old when payments begin.
How are Income Payments Determined?
The payment amount is determined by the age(s) of the annuitant(s) at the time the annuity is created (see below for selected rates). You may defer the start of payments. The longer the start of payments is deferred (at least one year), the higher the payment amount.
passing, and then allow their Last Will and
Testament to pass along some of their assets to
worthy causes. We felt that we would like to
accelerate that process and become more directly
involved with our charitable giving.” Priscilla
O’Brien ’60 shared regarding why she and her
husband established a charitable gift annuity at
SUNY Potsdam. Read more.
Tax and Financial Information
A portion of your gift may be deductible for federal income tax purposes, provided you itemize your deductions. The deduction is determined by the amount of the gift, the age(s) of the annuitant(s) and a discount rate provided by the IRS each month.
Assets grow within a gift annuity tax free. Annuity income payments may be a mixture of tax-free, capital gain and ordinary income, depending on the circumstances of the original gift and the income beneficiary(ies). At some point the entire annuity payment may become taxable as ordinary income. In most circumstances no capital gain is recognized at the time the annuity is created. Gift annuities are often used to diversify a portfolio without immediately recognizing capital gains, generate increased income from low-yielding assets, or move a portfolio from a variable to a more fixed income position. Gift annuities are also used to provide income to parents, siblings or other loved ones.
Other Important Information
- A gift annuity costs nothing to create. The Potsdam College Foundation follows the rate schedule published by the American Council on Gift Annuities (ACGA).
- Additional gifts cannot be added to an existing annuity, but a new annuity can easily be created.
- Under current law, neither grants from a donor-advised fund nor qualified charitable distributions from your IRA may be used to fund a gift annuity.
- Income payments may be deposited electronically to your bank account. Income payments are made on a quarterly basis.
- All gift annuity funds are professionally managed through the Potsdam College Foundation. Your 1099R income tax statement will be sent to you by January 31 each year.
- Your gift annuity may count at full value in SUNY Potsdam fundraising campaigns and anniversary reunions. Gifts may also be eligible for recognition in the President’s Club.
- Your gift annuity may make you a member of the Raymond Legacy Society.
We can prepare charitable gift annuity financial projections for your review. Contact the Raymond Legacy Society for help and further information:
Jason Ladouceur ’94, Senior Director of College Advancement
Potsdam College Foundation
44 Pierrepont Ave., Potsdam, NY 13676
(315) 267-2190
giftplan@potsdam.edu
The Raymond Legacy Society celebrates those who have made an estate gift arrangement to support the College, as well as those who have established a permanent endowed fund. The Society also provides educational material on giving to assist alumni and friends in achieving their philanthropic goals. For more information, visit potsdam.edu/legacy.
This information does not provide legal or financial advice, nor is it a comprehensive review of the topic. You should consult your attorney, tax advisor and SUNY Potsdam before making or planning your gift. (rev. 12/21)