Charitable Gift
Annuities
Boykin
and Betsy Curry wanted to make a lasting gift that would benefit Self
Regional Healthcare and ensure income for life. They discovered that a
Charitable Gift Annuity would make both possible and offered substantial
tax benefits.
Boykin: "Setting up a Charitable Gift Annuity proved to be
the best way for Betty and me to make a planned gift to the Foundation.
Our gift helps Self Regional Healthcare and provides Betty and me with
excellent tax benefits and lifetime income.
The Foundation Staff was very grateful for our support and made it
so easy to set up."
A charitable gift annuity can provide
tax benefits now and a lifetime income for the donor and a beneficiary
if desired. It can also bring peace of mind regarding the continuance
of a guaranteed, fixed amount of income that be set up as an annual, quarterly
or monthly payment.
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
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.
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 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.
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 Self Regional Healthcare by Future
Focus. Please report any problems to webmaster.
Revised: April 15, 2010 11:37 .