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Charitable Gift Annuities
Joyce and Burton had been married for forty-seven years. Not long
before he died, Burton looked into converting some of their certificates
of deposit into a charitable gift annuity. He and Joyce met with
their advisors and found out it was a wonderful idea.
 Joyce:
We met with our tax advisor and looked at the idea. When I saw
the income we would have for the rest of both of our lives and compared
to what we were receiving from our CD's, I was amazed! Plus there
were tax benefits that helped us immediately. And now, I don't have
to do a thing - it's all taken care of.
The development officer explained how they could use our support
and what it meant to them. It was something Burton and I did together,
and I'm really happy we did it!"
A charitable
gift annuity can provide tax benefits now and a life-time income
for the donor and a beneficiary if desired. Perhaps also it brought
peace of mind to Burton knowing that Joyce would have the resources
she needed if he was no longer there.
A deferred gift annuity is a variation on a gift annuity.
A gift is made and the charitable organization agrees in return
to pay you an income stream that begins on a future date you specify.
The annuity rate is calculated based on your age when the payments
begin and will be greater than an immediate annuity based on your
current age. The charitable deduction, which you get to take in
the year of the gift (subject to your tax circumstances), will also
be based on when the payments begin and will also be greater than
if it was an immediate annuity.
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 Jacqueline
grew up in London and her education exposed her to fine art
and music and she actually sang in musical events. I met her
in my hometown of New York where we continued to love the
artistic exposure of the city. When we first moved to the
Bay area in 1965 we felt somewhat deprived of musical inspiration
but through the influence of Helene and Stanton Schwartz became
interested in the California Symphony. We have marvelled at
the symphony's growth and the ability to bring young musicians
to Walnut Creek. Barry (a fellow New Yorker) and Rosalind
have inspired us to appreciate the finer nuances of music.
We certainly are pleased to include the California Symphony
in our estate planning.
Jacqueline and Yorke Jacobsen
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A flexible deferred gift annuity allows you to pick a range
of dates when the annuity payments will begin. For example, you
might choose to begin quarterly payments on March 31st of any year
not earlier than 2013 or later than 2018. The payment amount will
be based on the year you choose in the future to have payments begin.
The charitable gift deduction is based on the earliest possible
beginning date (2013 in this case) and is taken in the year of the
gift, subject to your tax circumstances.
An attractive benefit of deferred gift annuities is that they enable
a donor to make a gift now, and take a charitable income tax deduction
now while in a higher tax bracket. Income may be deferred, for instance,
until after retirement, when the rate of tax will presumably be
lower.  Deferred
gift annuities are creative ways to delay income to pay for children's
or grandchildren's college expenses, supplement your retirement
income, or assist with assisted-care living arrangements that may
be inevitable.
A part of each payment, as in any gift annuity, may be tax-free
for a period of years. However, the precise amount of each payment
will depend on the tax rules in effect when the payments start.
Charitable gift annuities are the gifts that keep on giving. Rates
on charitable gift annuities are based on age and whether the contract
is immediate or deferred. If you would like an illustration of this
life income to address your particular situation, please click
here and fill out the response form and send us the appropriate
information. To look at some specific rates on current gift annuities,
click
here. A generic
example of a charitable gift annuity is available as well as
a graphic
example.
Now click here to meet Susan and Fred.
Please note, individual financial circumstances
will vary. The information on this site does not constitute legal
or tax advice. Donor stories and photographs are for purposes of
illustration only. As with all tax and estate planning, please consult
your attorney or estate specialist. All material is copyrighted
and is for viewing purposes only. Use of this site signifies your
agreement with the terms of use. The content
in this Planned Giving section has been developed for the California
Symphony by Future Focus.
Please report any problems to webmaster.
Revised: May 8, 2007 14:19.
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