Boost Your Retirement Income with a Charitable Gift Annuity

In today’s unpredictable market, finding ways to stabilize your income can make a meaningful difference—especially in retirement. One option to consider is a charitable gift annuity (CGA). This unique giving strategy allows you to support the Stony Brook programs you care about most while also creating a reliable income stream for yourself. 

Below, our Office of Gift Planning has provided helpful information to guide you in determining whether a CGA might be the right fit for your financial and philanthropic goals.

How it Works: When you establish a gift annuity, you transfer cash or securities to Stony Brook, and in return, we pay you a fixed amount every year for life. These payments are backed by all of the assets of the Stony Brook Foundation and will never decrease. Plus, your gift continues to support Stony Brook after your lifetime.

Example:

Robert and Janet, both 70, are planning for retirement. They need more income than their current IRA withdrawals provide, and they also want to make a meaningful gift to Stony Brook Children’s Hospital. They decide to use a charitable gift annuity to meet both needs.

They contribute $200,000 in stock that is currently earning very little income. In return, they receive $8,400 a year from the gift annuity—much more than they were getting from the stock’s dividends. Over time, the payments will be taxed in a way that benefits them: part of it will be tax-free, part will be taxed at a lower capital gains rate, and part as ordinary income. Plus, part of their capital gain is immediately forgiven and they will get a significant tax deduction this year, which helps reduce their tax bill.

Not only does this strategy give Robert and Janet more dependable income, but it also allows them to leave a lasting gift for Stony Brook and the Children’s Hospital. 

Why It Might Be Right for You 

With a charitable gift annuity, you’ll receive dependable payments backed by the Stony Brook Foundation, all while supporting a cause that’s meaningful to you. It’s a simple way to make a lasting impact – and enjoy some financial peace of mind along the way.

If you’re interested in learning more, we’d be happy to provide further details about how a gift annuity could work for you.

Click here to request your custom calculation or contact the Office of Gift Planning today!
Phone: (631) 632-4413
Email: gift.planning@stonybrook.edu

Not Yet Retired? Consider a Deferred Gift Annuity

If you are not yet retired but want to build a retirement nest egg, a deferred charitable gift annuity can be a smart option. It lets you contribute now and start receiving income later.  Plus, it is not hampered by the same contribution limits as traditional retirement funds like 401(k)s and 403(b)s. You can contribute appreciated securities without paying taxes on the gain, and you can choose when you start receiving income—whether it’s a few years from now or later for an even higher payout rate.

New Opportunity: Direct Your IRA to Fund a Gift Annuity

As you may know, if you’re 70½ or older, you can transfer up to $108,000 (adjusted for inflation) from your IRA directly to a qualified charity each year. This transfer counts toward your required minimum distribution (RMD) and does not add to your taxable income.

But did you know that you can also use your IRA to fund a life-income plan, like a gift annuity, once during your life? This allows you and/or your spouse to receive income for life while making a charitable gift. This option is especially beneficial for those who want to give from their IRA but also need to sustain their retirement income. For 2025, each individual can transfer up to $53,000 for a life-income gift (only in one tax year). The transfer counts toward your required minimum distribution, which starts at age 73.

These transfers are tax-free and can be a simple way to support Stony Brook while managing your retirement income. For more details, reach out to the Office of Gift Planning.

To read about more creative solutions for giving, visit our webpage.