Charitable Gift Annuities
Joyce and Burton
had been married for forty-seven 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 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 it 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.
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!"
What have we done
with support like that of Burton and
Joyce? We've been able to fulfill our
mission - public broadcasting's noncommercial,
audience-driven mission. It guarantees
that substance and value, not commercial
considerations, govern our programming
decisions.
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.
And that what they enjoyed in their
lifetimes would be able to continue
for others after they were gone.
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 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. Or return to
the Planned Giving homepage.
