Charitable Gift Annuity

Charitable Gift Annuities

 

In this popular charitable giving arrangement, the donor makes a gift of a minimum of $25,000 to New Mexico Tech. The University then provides a secure, fixed, quarterly payment for the life of one or two individuals, for example, the donor and spouse.

Benefits

  • Immediate tax deduction and capital gains deferral on appreciated assets such as stock.
  • Fixed, secure payments for life.
  • Annuity rate of 5.1% to 9.0% of the gift amount, depending on the annuitants’ ages at the time the gift was made. 
  • Assets contributed are removed from your taxable estate, unless beneficiaries other than you and your spouse are involved.

Donors must be at least 70 years old to establish a gift annuity arrangement and start receiving payments from it. The payment they receive, which is fixed for life and backed by a reserve fund and other New Mexico Tech assets, is based on a percentage of the gift amount, and that percentage is determined by the age of the annuitant(s) when the gift was made. To establish these rates, New Mexico Tech follows guidelines set by the American Council on Gift Annuities (ACGA).

Donors interested in a higher tax deduction and a larger gift for New Mexico Tech may accept a rate lower than the one New Mexico Tech offers. The American Council on Gift Annuities makes periodic adjustments to its rate table, and the amount of the IRS tax deduction can vary as well. Charitable gift annuities are not available in Alabama, Hawaii, and Wisconsin.

The information presented on these web pages is not offered as legal or tax advice. You are urged to seek the advice of your tax advisor, attorney, and/or financial planner to make certain any gift you are considering fits well in your specific circumstances.