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Create Income Now

Introduction

Princeton offers three types of life income plans. These plans provide payments for life and also allow the University to support student and faculty endeavors.

Learn about how a charitable life-income plan can pay you (and another) income for life; give you an income tax charitable deduction now for assets that go to charity after life; enable you to reinvest appreciated investments with no or reduced capital gains taxes; and make important charitable gifts. Charitable tax incentives for this year under the CARES Act and a host of other tax-smart philanthropy ideas will be explained.

Charitable Gift Annuities

A charitable gift annuity (CGA) provides guaranteed payments to you and/or your beneficiaries age 65 or older for the payees’ lifetime. The remainder then supports the Princeton programs of your choice.

How it works:

  1. You make a gift of at least $25,000 to Princeton (usually cash or securities).
  2. The University then provides a secure, fixed, quarterly payment for the life of one or two individuals – for instance, you and your spouse.

Are you eligible?

  • You are at least 55 years old (60 for a two-life CGA)
  • You will be at least 65 years old when you begin receiving payments.
  • You want to make a gift of at least $25,000

 
Princeton follows the rates of the American Council on Gift Annuities, with the exception for donors who are residents of New York State. For more information on rates, click here. For a customized estimate on a CGA, use our online gift calculator, or contact us. If you are a resident of New York State, please contact us directly.

Benefits:

  • Fast and easy to set up
  • Immediate federal income tax deduction<
  • Capital gains taxes on appreciated assets such as stock are reduced and deferred*
  • You or your designee will receive fixed quarterly payments for life
  • The remainder of your gift will support Princeton and can be designated for a specific purpose
  • Contributions paid in full by June 30 of your major Reunion year (50th or higher) can count toward your Annual Giving donation through the AG Legacy program
  • Recognition as a member of the 1746 Society

*Certain IRS limitations apply, and capital gains taxes are deferred only when the donor is also the designee.

The information presented is not intended as legal or financial advice. Please consult your own professional advisors to discuss your specific situation.

Charitable Remainder Trusts

A charitable remainder trust (CRT) allows you to donate property or assets while continuing to receive payments based on those assets.

How it works:

  1. You place a gift of at least $100,000 into a trust with Princeton as trustee.
  2. The trust pays a percentage of the trust’s principal to the beneficiary you name for life, or a specified term.
  3. When the trust ends, the remainder becomes a gift to Princeton.

CRTs come in two varieties:

Charitable remainder unitrust: offers payments that vary from year to year with investment performance.

Charitable remainder annuity trust: offers fixed payments based on the initial trust value.

Past performance is no guarantee of future results.

Could a CRT work for you?

Please use our online gift calculator, or contact us.

Benefits:

  • Payments may be higher than stock dividends
  • Donors can add to a unitrust at any time
  • Capital gains taxes on the sale of appreciated stock are reduced and deferred
  • Eligible for an immediate federal income tax charitable deduction
  • Assets are removed from the donor’s taxable estate*
  • When the trust is managed by Princeton, it is invested in a diversified portfolio of equities and fixed-income products
  • The remainder of your gift will support Princeton and can be designated for a specific purpose
  • Contributions paid in full by June 30 of your major Reunion year (50th or higher) can count toward your Annual Giving donation through the AG Legacy program
  • Recognition as a member of the 1746 Society

*Certain IRS limitations apply, and taxable estate is reduced only when the donor is also the designee.

The information presented is not intended as legal or financial advice. Please consult your own professional advisors to discuss your specific situation.

Pooled Income Fund

Princeton’s Tiger Fund invests contributions from a number of donors and makes payments based on their share of the income.

How it works:

  1. You contribute at least $25,000 to the Tiger Fund.
  2. You or your designee receive quarterly payments for life.
  3. You may add $1,000 or more at any time, as often as you like.
  4. The remainder becomes a gift to Princeton.

Donors may designate up to two beneficiaries (for instance, a spouse, children, or grandchildren).

Benefits:

  • Lifetime income for you and/or a designee
  • Funds can be added at any time
  • Payments vary depending on investment performance
  • Capital gains tax are eliminated for appreciated securities when the donor is also the designee
  • The assets contributed are removed from your taxable estate, unless you name beneficiaries other than you or your spouse*
  • Recognition as a member of the 1746 Society

Tiger Fund: This fund invests primarily in stocks; its objective is to provide long-term growth resulting in higher income over the long term.

Could a pooled income fund work for you?

Please use our online gift calculator, or contact us.

*Certain IRS limitations apply.

The information presented is not intended as legal or financial advice. Please consult your own professional advisors to discuss your specific situation.

Annual Giving Legacy

You can now make a significant gift to Annual Giving for your major reunion, while providing yourself and/or your beneficiaries an income stream.

Learn More

Information for Estate Attorneys and Administrators

Our legal name is: Trustees of Princeton University
Our tax ID number is: 21-0634501
Our address and contact information for estates and trusts is:
Office of the General Counsel
Princeton University
New South Building, Fourth Floor
Princeton, NJ 08544
609.258.2500