Stewardship:
Planned Givng
Gift Annuity Benefits
One of the simplest and
most popular charitable gifts is a charitable gift annuity.
This gift option is a combination of an investment and a gift
and provides life income to the donor (and another recipient
if desired - the annuitants).  The
designated charity accepts the gift and in return obligates
itself to pay a fixed and specified dollar amount to the annuitant(s)
for life.
A charitable gift annuity
immediately becomes the property of the charity and is an
irrevocable gift. The charity is legally bound to fulfill
its commitment to pay the annuitant(s) for life. Some states
have regulations regarding the issuance of charitable gift
annuities. Please contact us
regarding any questions.
There are two types of
charitable gift annuities - immediate and deferred. An immediate
annuity begins paying income immediately after the annuity
agreement is signed. A deferred charitable gift annuity begins
the income payments at a specified date in the future. A deferred
charitable gift annuity will generally provide a larger charitable
deduction than the immediate annuity and, as the funds will
have an opportunity to grow without income distributions for
a period of years, the income rate will generally be larger.
Benefits
As a portion of the annuity
is a gift, you'll receive an income tax deduction for the
gift if you itemize.
- A portion of the
annual annuity income is exempt from Federal taxes.
-
You may save tax on the capital gain (profit from an investment).
-
You avoid estate taxes, probate, and costs on the amount
involved.
-
The charity will have the use of the funds after the beneficiary's
lifetime.
-
The payments are fixed and will not fluctuate with interest
rates.
-
Your annuity is as safe as the organization you invest
with, for the total assets of the organization stand behind
their agreement to make payments to you.
-
Generally the funds used to set up a charitable gift annuity
may be structured as an unrestricted gift or to fund a
particular item or program that is important to you (with
the consent of the charity).
Return
to the Charitable Gift Annuities
story or to the glossary.
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