Charitable Gift Annuities

A life-income gift lets you support Princeton Day School while receiving payments for life (or for a set period of years), with the remainder going to PDS for the purpose you choose.

There are several ways to make a charitable gift that pays you income. One of the most common, and one that does not require an attorney, is a charitable gift annuity (CGA)—a simple contract between you and PDS. You can fund a CGA with cash, transfer appreciated stock that may not be paying a sufficient dividend, or convert another underperforming asset such as a savings account, money market fund, or CD bearing little or no interest. You receive fixed payments for life and may be able to claim a tax deduction for the year of the gift.

There is a CGA option for many situations. If you are still working, you can fund an annuity today and schedule payments to begin when you retire. If you are nearing retirement or already retired, you can defer your payments or begin receiving them right away.

Immediate gift annuity

You make your gift, may claim a deduction, and begin receiving annuity payments right away. This option is available to donors age 60 or older.

Deferred gift annuity

You may claim a deduction now and defer payments to a later date, which is often advantageous for younger donors. Deferral generally allows for larger payments.

Flexible gift annuity

This is like a deferred gift annuity, with a donor-directed option to choose when payments begin. The longer you wait, the higher the payout rate and the larger your payments.

IRA-to-CGA option

CAA 2023 allows a one-time QCD to fund a life-income gift, most often a charitable gift annuity (CGA) or a charitable remainder trust (CRT). This one-time transfer is capped at $55,000 (indexed for inflation) and must go to a qualified CRT, or to a charity in exchange for a CGA. Important terms and conditions apply. Please contact our office or your own financial advisor.

To see what a CGA might look like for you, contact us for a personalized illustration. We encourage you to review it with your own legal and financial advisors.