Charitable Gift Annuity
Income for
today, a gift for tomorrow.
Giving through a
Charitable Gift Annuity allows you to arrange a generous gift to
your community, while providing yourself a new income source you
can count on for the rest of your life.
Income from your
Charitable Gift Annuity may add up to more than the interest and
dividends you earned from holding the assets. You can use this
income to supplement your own lifestyle, or that of someone
else: a sibling, a dependent parent, a friend, or a former
employee. You or a loved one can start receiving annuity
payments immediately, or defer them to increase your charitable
income tax deduction. A portion of the income may be a tax-free
return of principal, while some is taxed as ordinary income or
capital gains. The amount of annuity paid and the tax deduction
received depends on the age of the recipient and the current
annuity rate (as established by the American Council of Gift
Annuities).
A Charitable Gift
Annuity reduces estate assets and may reduce estate taxes. Plus,
it’s easier to set up than a charitable trust and is backed by
the general assets of your community foundation.
How it works:
-
You make a gift
to your community foundation—you can give cash, appreciated
stocks, real estate, or other assets.
-
We set up a
contract with you that combines immediate annuity payments
with a deferred charitable gift.
-
You receive a
stream of income that is fixed, regardless of market
conditions.
-
You also receive
an immediate tax deduction for the charitable portion of
your gift.
-
Upon your death,
we set up a fund in your name, in the name of your family or
business, or in honor of any person or organization you
choose.
-
We handle all
the administrative details—issuing annuity payments to you
during your lifetime and, afterward, issuing annual grant
awards to charities in the name of the fund.
-
Your gift can be
placed into an endowment that is invested over time.
Earnings from your fund are used to make grants addressing
community needs. Your gift—and all future earnings from your
gift—is a permanent source of community capital, helping to
do good work forever.
