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Joyce and Burton had been married
for 47 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 advisers and
found out it was a wonderful idea.
Joyce: We met with our
tax adviser 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 CDs, 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
happy; really happy we did it when
we could do it together!"
A charitable
gift annuity can provide tax benefits
now and a lifetime 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
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.
Now click here
to meet Susan and Fred.
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