A gift annuity is a simple contract between you and The Rockefeller University. In exchange for an asset (i.e. cash or stock) you irrevocably transfer to The Rockefeller University, you and/or another beneficiary receive a guaranteed fixed annual payment for life. The Rockefeller University welcomes gift annuities in the amount of $10,000 and above. The amount of the income payment is based upon the age of the income recipient(s) and rate tables established by the American Council on Gift Annuities. In general, the older the recipient, the higher the income rate. Another advantage of gift annuities is that in many cases a portion of the income is tax free for a period of years.

Ms. Smith, 76 years old, has an interest in supporting the innovative biomedical research at The Rockefeller University. She is in the 39.1% income tax bracket. Ms. Smith wishes to makes a cash gift of $100,000 to The Rockefeller University in exchange for a charitable gift annuity in 2001. Ms. Smith will be paid an annual fixed income of eight percent of value of the initial cash gift ($8,000). A portion of the $8,000 payment is tax free for a number of years, as determined by IRS tables. After Ms. Smith's lifetime, The Rockefeller University may use the remaining funding asset for its research initiatives.

• Ms. Smith receives an immediate income tax deduction of $43,561.*
• She is paid a fixed annuity of $8,000 per year, of which $4,784 is tax-free income for more than eleven years.**
• She removes the asset from her estate, avoiding possible estate taxes on the asset.
• Mrs. Emerson has created a legacy to support scientific research through a generous gift to The Rockefeller University

* The calculations are for illustrative purposes only. Actual benefits may vary depending on the age of the beneficiary, the IRS discount rate, and the timing of the gift.
**The timing for when the annual income becomes taxable is based upon the actuarial tables.

If you would like additional information about charitable gift annuities, please call Ms. Vickie Lister, director of planned giving, at (212) 327-8658. The Rockefeller University recommends that you consult with your legal and financial advisors before proceeding with any planned gift.

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