Joe Levitch ’69 has given to MIT in a variety of ways, from mentoring and volunteering to establishing a scholarship fund and an athletics leadership program. Here, he is pictured at the 2019 Katharine Dexter McCormick (1904) Society brunch with Jason T. Necaise ’20, one student who has received financial support from scholarships he has funded. Joe’s charitable gift annuity (CGA), made through the Office of Gift Planning, is unique among the other ways that he supports the Institute. “The main reason for establishing the CGA was to create a predictable retirement income flow—something we all need at some point in our lives—with payout rates that are more attractive than most other alternatives,” he says.

Besides additional income, he also names MIT endowment returns and tax advantages as key benefits to a CGA. “The CGAs are invested alongside the MIT endowment, whose expert investment team at MITIMCo continues to produce returns that exceed those of my commercial investment advisors, with less volatility. This benefits MIT and the student needs that I support since the MIT endowment’s returns are likely to be greater than the value of my personal investment accounts,” he explains. “A CGA also allows me to enjoy tax advantages now while I still have an income tax liability and has the potential to reduce my estate taxes in the future.”

Life-income gifts are a cornerstone of planned giving at MIT, simultaneously providing income for donors while supporting the Institute. A CGA is an irrevocable gift that can be established with a gift of $20,000 or more, and annuitant(s) must be at least 50 years old at the time that payments begin. You have three options for annuity payments: immediate; deferred to a specific date; or flexible-deferred, in which you can give now and decide later when to initiate payments. Deferred payments will garner a higher interest rate (see this chart of the most current charitable gift annuity rates). The remainder of your gift becomes available to MIT for the purpose you have chosen when the annuity expires, whether it be scholarships, fellowships, research support in a specific area, or an unrestricted gift.

If you are interested in creating a CGA, MIT’s experienced gift planning team can answer your questions in a confidential discussion and provide you and your financial advisor with personalized gift calculations.