“A little planning helps our assets do a great deal more!”
Chairman's Circle member, Friends of the Institute for Advanced Study
There are many creative and flexible options that will allow you to make a gift to the Institute while retaining financial benefits and tax advantages for you and your loved ones. A Planned Gift may allow you to include the Institute as part of your philanthropic strategy while you:
- Provide a lifetime income for you, a family member or friend.
- Reap the benefits of a charitable income tax deduction.
- Eliminate long-term capital gains tax on appreciated securities.
- Remove assets from your estate.
- Pass assets to your grandchildren free of estate taxes.
- Have your funds professionally managed—gifts for which the Institute serves as trustee are managed by Glenmede Trust.
- Use real estate or other tangible assets to create a stream of income for you or your family.
Planned gifts may be established during your lifetime (inter vivos) or through your will (testamentary). Read about various planned gift options below:
Charitable Gift Annuities
A Charitable Gift Annuity (CGA) is a popular philanthropic strategy because of its many benefits and the ease with which it can be established. A CGA is a simple contract between the donor and the Institute for Advanced Study, in which the donor makes a gift in exchange for a stream of annuity payments to one or two individuals (annuitants) during their lifetimes. Donors can establish annuities for themselves and/or a spouse, for their parents, or to support a relative or a friend. Donors can elect to begin receiving annuity payments immediately or defer payments to a later date.
Individual annuity rates, which range from 4.4 percent to 9 percent depending on the annuitant’s age, will be higher if the gift is made now and the payments are deferred. Donors are eligible for an immediate charitable income tax deduction and capital-gains tax deferral if the annuity is funded with appreciated assets such as stock. In addition, a portion of each annuity payment is tax-exempt.
The annuity contract terminates upon the death of the annuitants, and the residuum is added to the Institute's endowment. A CGA enables a donor to have a lifetime stream of income, and support future generations of scholars at the Institute for Advanced Study.
The Institute is qualified to grant CGAs in New Jersey and in many other states. An irrevocable gift of at least $10,000 is required to establish a charitable gift annuity, and the annuitant must be at least sixty years old when income payments begin. Please use our Planned Gift Calculator to find out how a Charitable Gift Annuity would work for you.
Related Story: Extending the Gift of Scholarship to Future Generations
Charitable Remainder Trusts
A charitable remainder trust is an arrangement where assets - usually cash, securities or real property - are irrevocably transferred to a trustee, removing these assets from your estate. A charitable remainder trust can be created and funded during your lifetime or can be a testamentary trust - a trust that is created in your will.
The Institute may serve as trustee or you may select a trustee of your choice. The beneficiaries of the trust will receive a stream of income for the duration of the trust while the grantor - the creator of the trust - will receive a charitable income tax deduction in the year the trust is funded. A minimum of $100,000 is needed to establish a charitable remainder trust managed by the Institute.
There are two types of Charitable Remainder Trusts:
A Charitable Remainder Unitrust pays a predetermined percentage of the fair market value of the trust assets (but not less than 5%) as revalued annually. Unitrusts may offer important protection against inflation. As the assets in the trust increase in value, so does your income. Additional contributions may be added to a unitrust.
A Charitable Remainder Annuity Trust pays a fixed dollar amount for the life of the trust regardless of the trust's market value. The dollar amount is determined by calculating a percentage (not less than 5%) of the trust's assets at the time the trust is funded. Although no additional contributions may be made to an annuity trust, you may establish more than one trust.
For an illustration of how a Charitable Remainder Trust might work for you, please use our Planned Gift Calculator. Select charitable remainder annuity trust or charitable remainder unitrust when indicating "gift type." Under "term type" indicate either the birth date(s) of the income beneficiary(ies) or the number of years (up to 20) you wish the trust to last.
Read about Charitable Remainder Trust gifts by clicking on the links below:
Charitable Lead Trusts
A charitable lead trust provides an advantageous method of making a substantial annual contribution to the Institute, while enabling you to transfer assets to your heirs, greatly reducing gift and estate taxes. The lead trust remains one of the very few ways to shelter property - and any future appreciation - from the generation-skipping transfer tax, and thus provide for your grandchildren.
Under such a trust, cash or securities are transferred irrevocably to a trustee, usually for a period of 10 to 20 years. The trustee pays an annual fixed percentage to the Institute for the term of the trust, with the residuary going to your children and grandchildren.
Any increase in the value of the trust is free of gift and estate taxes. As a result, it is frequently possible to pass on to your grandchildren a larger estate than would have been possible otherwise. Furthermore, the gift tax due the year the trust is created is reduced by a deduction equal to the present value of the income stream to the Institute.
A minimum gift of $100,000 is needed to establish a lead trust at the Institute.
If you would like to discuss how a charitable lead trust might work for you please use our Planned Gift Calculator.
Gifts of Real Estate
Giving a gift of real estate, such as a personal home, a vacation home, undeveloped property, or a farm, can be a highly effective philanthropic and financial strategy.
There are many ways of making a charitable gift of real estate that can provide substantial financial benefits to you and your loved ones. Through the years, the Institute has been the beneficiary of several special gifts of real estate. Professor Einstein's historic 19th century house was left to the Institute by his daughter, and has been home to several Institute Faculty members.
The generosity of Harold K. and Mary Marquand Hochschild provided the Institute with a gracious guest house and a site for important gatherings.
You may make an outright gift of property that will both fund a special project and provide you with a charitable income tax deduction for the fair market value of your donated property. Or, you may use a home or land you no longer want or need to fund a life income arrangement that will create a payment stream for you or for a beneficiary.
You may leave your home to the Institute through your will, or you may consider donating it now, but retain the right to occupy the property for the remainder of your life (a "life estate"). In this case, the Institute acquires the full property interest at the time of your death. You would receive a tax deduction based upon your life expectancy at the time of the gift, reduce the value of your taxable estate, and simplify the settlement of your estate. Use our Planned Gift Calculator to see how a retained life estate would work for you.
Donors may make a partial gift of their home through a bargain sale—a sale to the Institute at a greatly reduced cost—thus providing cash for the donors as well as a substantial charitable income tax deduction.
Contact us to discuss the tax and other benefits of making a gift of real estate.
If you would like to see how one of these gift plans might work for you, please use our new Planned Gift Calculator.
The Institute's Planned Giving Office is available to work with you and your legal or financial advisors to help ensure that any planned giving arrangements you are considering accurately reflect your intentions and fit into your overall estate plans.
By making a planned gift to the Institute, you will become a member of the Einstein Legacy Society, a society established in 1996 to honor all Institute supporters who have included the Institute in their estate plans.