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Charitable Gift Annuities
Goal: Receive guaranteed fixed income that is partially tax-free
Benefit: Current and future savings on income taxes, plus fixed, stable payments
and Burton had been married for forty-seven years. Not long before he died, they
looked into converting some of their certificates of deposit into a charitable
gift annuity. They 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.
development officer explained how they could use our support and what
it meant to them. Burton and I talked about how we enjoyed ourselves when
we volunteered and how the hospital is important to our community. I'm
glad we made the decision 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.
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 withdrawals until the payments begin. With
more money in the fund once payments begin, the payments will be larger than with
a comparably-sized immediate annuity.
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
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. An example of a charitable gift annuity is available.
click here to meet Susan and Fred.