The Charitable Gift Annuity – A Gift that Gives Back
What is a Charitable Gift Annuity?
It’s a charitable gift and an annuity that provides fixed payments for life, saves taxes up-front and leaves a lasting gift to a fund at the Foundation. This uncomplicated gift is popular because both parties benefit from the arrangement. The transfer is in part a gift to charity and in part the purchase of an annuity and that is how federal tax law views the gift annuity.
Why It’s Popular
Gift annuities allow many donors through modest funding to make significant gifts they may not have thought possible. Gift annuities provide lifetime payments to you/or your designated beneficiary (up to two lives). The payments are fixed and are not affected by changes in interest rates or financial markets.
How Gift Annuities Work
A gift annuity is a contract between you and the Foundation. When you make an irrevocable transfer of funds to us, we agree to pay you and/or your designated beneficiary a fixed amount quarterly for life. Contributions to set up a gift annuity qualify for an immediate charitable tax deduction in the year of the gift. Plus, part of the payments will be tax free until you reach your life expectancy (as measured when you arrange your gift), after which the payments become entirely ordinary income. Most importantly, your gift will support a fund at the Foundation in a significant way, allowing you to have an important impact on our future.
How the Annual Payout is Determined
The amount of the payout is based on the age of the income beneficiary and the cash amount donated. Generally, the older the annuitant is the higher the payout rate.
Gift Annuity Rates
(Note: Charitable gift annuity rates are subject to change. Please call our office for the latest rates.)
