Charitable Gift Annuities

Charitable Gift Annuities:  a charitable gift that provides lifetime income and support for your community.

What is a Charitable Gift Annuity?  A gift annuity is an agreement that can in-crease your cash flow that provides guaranteed fixed payments for life. Lifetime annuity payments, based on age may be two or three times higher than your cash return on low-earning securities or CDs.

A Gift that Lives with You – A gift annuity allows you to make a gift of cash or stock to support your community while providing you with a guaranteed income source. Your gift works during your lifetime by paying you a level and partially tax-free income. You can also choose to benefit someone else. For example, income payments can be continued for your spouse or another loved one after your death. Upon the death of the last income recipient, the annuity will support your com-munity or favorite charities as you direct.

Benefits of a Charitable Gift Annuity

  • Gives you the satisfaction of making a gift today that will invest in your community and favorite charities for the future
  • Increases your income
  • Provides a guaranteed fixed income for life
  • Allows you to enjoy partially tax-free in-come
  • Provides a charitable income tax deduction in the year of the gift

 

Current Payment Gift Annuity 

*Current Guaranteed Income Rates:

Figures based on a $20,000 charitable gift

Age

Rate

Annual Income

Income Tax Deduction

65

4.7%

$940.00

$8,215.78

75

5.7%

$1,140.00

$9,997.53

85

7.9%

$1,580.00

$11,498.02

90

8.0%

$1,600.00

$13,580.64

 

Deferred Payment Gift Annuity  – An option that many consider is a deferred payment gift annuity. By deferring your guaranteed, fixed annuity payments until at least age 65 or beyond, you could increase the amount you re-ceive each year, while increasing your current charitable income tax deduction. 

*Deferred Payment Gift Annuity Rates:

Number of years Payment Deferred

Age

5 yrs

10 yrs

15 yrs

50

n/a

n/a

10.3%

55

n/a

8.0%

11.1%

60

6.1%

8.6%

12.3%

65

6.6%

9.5%

14.1%

 *These calculations were made based on rates recommended by the American Council on Gift Annuities and the IRS interest rate of 3.2% for July 2008. All fees are taken into account in the calculation of the payout rate.

 

In today’s economic environment, you may want to consider the many advantages of a gift annuity as a tool to help you give back to your community. The concept of a gift annuity has been around for more than a century. The process of establishing a gift annuity is neither lengthy, complicated, nor does it involve any costs. The gift annuity is a basic agreement between you and the PineBelt Community Foundation.

Please click here for a brochure on a Charitable Gift Annuity

 

For more information please contact your Professional Advisor or Theresa Erickson, Executive Director at contact@PineBeltFoundation.org or call 601.583.6180