Life Income GiftsProvide income AND support Jewish life on campus. Hillel offers several ways that you can transfer assets to Hillel and receive payments in return, either for life or a term of years. Life income gifts can be made during one's lifetime, or at death to benefit one's heirs, and offer a variety of financial, tax, and estate planning benefits.
Donors who contribute highly appreciated assets which have little or no annual yield can increase their current income while making a significant gift to support Jewish campus life. The benefits of making a life income gift to Hillel include:
- Income for life (or a term of years) for you and/or persons you choose
- Diversification of and potentially higher rate of return on your investments
- An immediate federal charitable tax deduction
- Avoidance of capital gains tax
- Potentially reduced estate taxes
- Eligibility for membership in Hillel's Heritage Society
- The satisfaction of supporting Jewish life on campus
Learn more about these two ways to make a life income gift to Hillel:
Charitable Gift Annuities
Support Hillel while while ensuring your own financial future. A charitable gift annuity is a simple contract between you and Hillel, by which Hillel agrees to make fixed, annual payments for life to you and/or someone else you choose, in return for your gift of cash or marketable securities. A gift annuity can help you insulate your investment portfolio from today's market fluctuations.
You can establish a Hillel charitable gift annuity for as little as $5,000, at competitive interest rates. Assets like a low-interest CD or appreciated securities can be converted into an annuity paying up to 11.3% annually, depending on the beneficiary's age. The older the beneficiary, the higher the annuity rate.
As with other planned gifts, a charitable gift annuity qualifies you for membership in Hillel's Heritage Society.
Sample Single Life Gift Annuity Rates:
| Beneficiary's Age: |
Annuity Rate: |
Guaranteed Annual Payment ($10,000 gift): |
| 65 |
6.0% |
$600 |
| 70 |
6.5% |
$650 |
| 75 |
7.1% |
$710 |
| 80 |
8.0% |
$800 |
| 85 |
9.5% |
$950 |
| 90+ |
11.3% |
$1,130 |
Example:
Mrs. Ruth S., age 82, relies heavily for her living expenses on the interest from her various investments. She has a $10,000 certificate of deposit that is reaching maturity, which she can roll over to a new one-year CD paying 1.5%. She contacts Hillel and learns that she can earn 8.5% with a charitable gift annuity. She receives an income tax deduction when she makes her gift, guaranteed annual lifetime payments from Hillel (a portion of which are tax free), and the satisfaction of knowing that her gift ultimately will support Hillel's important work in connecting young Jewish students with their heritage.
Gift Annuity for One Beneficiary, Age 82:
| Cost of the gift: |
| (a) |
Cash gift to Hillel |
$10,000 |
| (b) |
Charitable tax deduction |
$4,636 |
| (c) |
Income tax savings
[assuming 38.6% tax bracket (b)] |
$1,790 |
| (d) |
Out-of-pocket cost of gift [(a) - (c)] |
$8,210 |
| Benefits of the gift: |
| (e) |
Guaranteed annual payments for life
(8.5% annuity interest rate, based on beneficiary's age of 82) |
$850 |
|
Tax-free portion of each annual payment |
$679 |
|
Effective rate of return [(e)/(d)] |
10.4% |
Hillel also offers charitable gift annuities for two beneficiaries (e.g., you and your spouse).
Find answers to common questions about charitable gift annuities.
Please either contact us or use the following forms to request a personalized gift annuity illustration or to apply for a Hillel gift annuity:
Request for Gift Annuity Illustration (PDF file 23Kb)
Gift Annuity application (PDF file 24Kb)
[Requires Adobe Acrobat Reader version 4.0 or higher.]
You can submit your completed form via mail or fax to:
Eran Gasko, Associate Vice President for Development
Hillel: The Foundation for Jewish Campus Life
Charles and Lynn Schusterman International Center
Arthur and Rochelle Belfer Building
800 Eighth Street, NW
Washington, DC 20001-3724
fax: 202-449-6411
[Back to the top]
Charitable Remainder Trusts
A charitable remainder trust allows you to transfer assets (cash, securities, or other property) into a trust which provides you or anyone you choose with an income based on a fixed percentage (at least 5 percent) of the trust's assets. The terms of the trust can be tailored to your specific philanthropic and financial objectives. When the trust ends, Hillel receives the remaining principal to support its work on campus.
Hillel offers two options to choose from. Typically, donors establish trusts with a value of $100,000 or more.
- Want the security of a fixed income stream? A charitable remainder annuity trust may be the best option.
- Want potential growth of your income payments? A charitable remainder unitrust may better suit your objectives.
As with other planned gifts, a charitable remainder trust qualifies you for membership in Hillel's Heritage Society.
Example:
Hillel Board of Directors member Carol Wise used a piece of property to establish a charitable remainder trust for Hillel. The income from the trust is twice what the property had produced for her previously. "I avoided paying capital gains tax on the sale of the property, and I use the annual income from the trust to increase my support for Hillel's important work with Jewish students," she says. "It's a win-win situation for everybody."
Please contact us to discuss which gift plan is right for you or to request a customized gift plan illustration.
The information on this Web page is for illustration purposes only and should not be considered legal, accounting, or other professional advice. The actual benefits of your gift may vary depending on your individual circumstances. Hillel's development professionals would be happy to assist you and your advisors in determining the best gift plan for you.
If you have questions or would like to learn more about life income gifts, you may contact Eran Gasko directly.