Through an annuity, trust, or pooled income gift, you can make a significant gift to Harvard, while receiving income for life (or a set term) for yourself and/or another beneficiary. At the death of the last income beneficiary or the end of the term, the remaining principal is transferred to Harvard.
How It Works
- You transfer assets to a life income plan and receive an immediate income tax deduction, as well as savings on capital gains taxes for a gift of appreciated assets.
- The assets are invested and managed through Harvard Management Company or TIAA Kaspick, with no separate fee.
- You and/or an additional beneficiary receive annual income, for life or a set number of years.
- When the plan terminates, the remainder principal passes to the Harvard School or initiative you specify or as an unrestricted gift, with no estate taxes.
Types of Plans
With a charitable gift annuity (CGA), a simple contract between you and Harvard that offers a tax-advantaged way to provide for income during retirement, you can begin to receive income right away, or at a predetermined future date. In the future, your gift will provide critical support to Harvard, and in the meantime, your income will be taxed at a favorable blended rate.
A CGA may be created with a gift of $25,000 or more and can be funded by cash, securities, or other assets. Individuals aged 70½ and older can also establish a CGA with a $53,000 distribution from a traditional IRA, which counts toward the required minimum distribution. Please reference the chart below for our current rates.
Harvard University Gift Annuity Rates*
Income rates are based on your age or the age(s) of your beneficiary(ies) when quarterly payments begin. Payments can begin at age 40; if you are younger than 60 and interested in a CGA, please contact us for rates.
| Donor makes a gift today at current age(s)… | …and annuity begins immediately at this rate... | …or waits 5 years before annuity begins at this rate: |
|---|---|---|
| 60 | 5.3% | 7.2% |
| 60/60 | 4.8% | 6.4% |
| 65 | 5.8% | 8.0% |
| 65/65 | 5.1% | 7.0% |
| 70 | 6.4% | 9.0% |
| 70/70 | 5.6% | 7.9% |
| 75 | 7.2% | 10.4% |
| 75/75 | 6.3% | 8.9% |
| 80 | 8.3% | 11.7% |
| 80/80 | 7.1% | 10.4% |
*Annuity Rates Current as of October 2024
Similar to a CGA, a charitable remainder trust (CRT) is a gift you establish with Harvard in exchange for income for yourself or a beneficiary during your lifetime; however, CRT donors receive payments based on a fixed percentage of the trust’s value, typically 5 percent, rather than a percentage based on the donor or beneficiary’s age. Trusts can be invested fee free by either Harvard Management Company (alongside the Harvard endowment) or TIAA Kaspick, and as the value of the trust changes, so too does the annual income.
A CRT may be established with a gift of $150,000 for trusts with beneficiaries aged 50 or older, or $250,000 for beneficiaries aged 45–49. You can establish a trust with a wide variety of assets, including appreciated securities and property, which provide many tax advantages.
Pooled income funds (PIF) consist of gifts from multiple donors that are combined into a trust invested for Harvard by TIAA Kaspick. Pooled income funds offer quarterly income for life for you and/or a beneficiary, tax benefits for the donors, and ultimately support for the vital work of the University. These funds can be established with an initial $25,000 gift and the minimum age for beneficiaries can be as low as 25.
“Establishing a charitable gift annuity was a meaningful way for my wife, Sandra, and me to support Harvard ‘through change and through storm’ while also gaining tax-wise benefits. Our gift will benefit the Harvard Map Collection and the Harvard College Fund, while creating a lifetime annuity for us both that will provide predictable fixed income.”
—Edward E. Poliakoff AB ’67