Charitable Gift Annuities

A charitable gift annuity can provide tax benefits now and a life-time income for the donor and a beneficiary if desired. A calculator is available.

George Hull loves living at the Pioneer House Assisted Living facility attached to Elim Rehab and Care Center in Fargo, ND. George appreciates the help he receives and the family like atmosphere. So he wanted to make a gift to Elim Care and at the same time increase his income. George funded two gift annuities with some appreciated stock. The annuities were on his life and one each for his two daughters.

George: Beyond the income I and my daughters will receive I wanted to leave a lasting legacy of support for Elim Care. They had cared so well for my wife before she died. I give these gifts in memory of my wife Laverne Hull knowing they will be used to continue the loving care she received.

A deferred gift annuity is a variation on a gift annuity. A gift is made and the charitable organization promises in return to pay you an income stream that begins on a future date you specify. Since the payments do not begin for a period of time, the fund will grow without withdrawls until the payments begin. With more money in the fund once payments begin, the payments will be larger than with an immediate annuity.

An attractive benefit of this arrangement is that it enables a donor to make a gift now and take a charitable income tax deduction now while in a high 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.

Elim Care Corporate Offices
7485 Office Ridge Circle
Eden Prairie, MN 55344
(952) 259-4500