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Charitable Gift Annuities
Perhaps no gift provides more benefits to both the donor and the charitable recipient than a charitable gift annuity.
Charitable gift annuities remain extremely popular with donors who would like more income during their lifetimes and would also like to continue supporting God’s work in their church and community after their lifetimes.
Increased Income
Gift annuity payments can generate considerably more income for the donor’s use. Current rates, for persons who are age 65 and over, are significantly higher than the rates of traditional fixed income instruments. A substantial portion of the payment received by the annuitant is free of income taxes, and approximately one-half to two-thirds of the gift amount is available as a charitable income tax deduction.
One Life or Two
Charitable Gift Annuities can be written on two (2) lives as well as on one life. Two-life annuities have slightly lower rates but guarantee the payments for as long as either annuitant lives.
Deferred Income
Donors who desire a charitable income tax deduction now, and a high rate of income at retirement, may elect to purchase a gift annuity now and defer receiving income payments until an older age. A donor who makes a gift at age 50 and elects to begin receiving payments at age 65 will receive a 12.3% payment rate. To receive annual income tax deductions and greater income at retirement, annual gifts may be added to the deferred annuity.
Leaving a Legacy
After the annuitant’s lifetime, the remaining balance (whether more or less than the original gift amount) passes to the charity or charities named in the annuity beneficiary agreement. The remainder value can be left directly to the donor’s church, related ministry, other charitable interest, or to the Foundation to be permanently endowed for a designated church, ministry, or purpose.
Deferred Charitable Gift Annuity
Gifts to your deferred gift annuity may be a one-time gift or may be scheduled annually for any period of time. Your annuity payments begin sometime in the future as designated by you. A deferred gift annuity can be an excellent planning vehicle for retirement, college tuition for children, etc. Income, estate, and capital gains tax savings apply.
If you or someone you know in your church might have an interest in learning more about charitable gift annuities, please contact the Foundation.
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