Gift Annuity

A charitable gift annuity is an agreement between you and the NDSU Development Foundation. To help meet the diverse needs of its donors, the Foundation offers two annuity plans: immediate payment and deferred payment.

What type of income you will receive

An NDSU Development Foundation gift annuity will pay you an annual fixed income (in quarterly installments) for life. You may, if you wish, name a second beneficiary to receive payments.
Part of your income may be tax-free, increasing the overall return to you, or taxed at the more favorable capital gains rate. Your annuity income payments are backed by the assets of the NDSU Development Foundation.

With an immediate payment annuity, your quarterly income payments begin right away. With a deferred gift annuity, your income payments begin at a specified date in the future, which you choose. Because payments are deferred, you receive a higher annual income, which may be used as a source of guaranteed retirement income.

How you can save taxes

When you make a contribution to establish an annuity, you are entitled to an immediate federal income tax deduction for a portion of your gift. Your deduction is based on the size of your contribution, the annuity payment rate, and the age(s) of the income beneficiary(ies). With a
deferred arrangement, you will receive a higher immediate income tax deduction. Cash gifts may be deducted up to 50 percent of your adjusted gross income; gifts of appreciated property may be deducted up to 30% of your adjusted gross income. Any excess deduction may be carried forward for up to five additional years if necessary. With a gift of appreciated property, you can avoid the up front 10 percent to 20 percent capital gains tax. You also can realize significant estate tax savings.

How to establish your own gift annuity

Typically, a gift annuity is established with an irrevocable gift of cash or marketable securities. Real estate or tangible property may be used in some instances. The minimum initial contribution required is $5,000. Income beneficiaries must be at least 40 years old when payments begin. Your annuity is administered by the NDSU Development Foundation at no cost to you. You may designate the future use of your gift at NDSU.

If you would like to receive more information about gift annuities, please e-mail Scott Barrett or call us at 701-231-6837 or 1-800-279-8971.

You can write to us at:
NDSU Development Foundation
1241 N. University Dr.
Fargo, ND 58102