Payments for Life From Our Charitable Gift Annuity

You can secure fixed annual payments for life by making a contribution to your favorite charitable organizations.

Our charitable gift annuity (CGA) will pay you (and a survivor, if desired) a fixed dollar amount when you make an irrevocable gift to us to further our mission. The rate of payment is determined by your age at the time of your contribution.

Here are examples of the annuity rates. These rates increase the older you are when you start, but the rate remains constant throughout your life once the gift is made.

Generous Income Tax Advantages

Assuming you itemize deductions, you can take a charitable deduction for part of the value of your gift when you file that year's income tax return. The amount depends, in part, on your age.

A sizable part of each annuity payment is also income tax-free.

When a CGA is funded with appreciated property, the up-front capital gains tax that would have been owed if the property had been sold is avoided. A portion of the annuity amount is reported as capital gain income over your life expectancy if you name yourself as the annuitant.

Use a Deferred Payment Gift Annuity to Supplement Your Retirement Funds

You can also have payments deferred until a later date. You make the contribution now, securing a current income tax charitable deduction, and we agree to pay you fixed annual payments starting at any age you choose, especially when your tax bracket may be lower.

For many people, tax reform has overtime curtailed the tax benefits of IRAs, 401(k) plans and other retirement plans. The deferred gift annuity is a good way to make up for the loss of the future funds you may need.

Example: Fred and Ann, both age 45, transfer $2,000 annually to a series of joint and survivor gift annuities, arranging for payments to start when they reach age 65. Fred and Ann are in a 25 percent tax bracket, and they itemize their deductions. The first year they deducted $494 of the $2,000 transferred. The amount of their deduction varies slightly each year thereafter. Based on then-current rates, they would receive $3,844 each year (partly tax free) beginning at age 65, a rate of 9.6 percent on their contributions totaling $40,000.

Worry-Free Funds

A CGA is a gift that gives you fixed and attractive retirement funds with no investment worries or responsibilities, and is a way to support your favorite charitable organizations when the remainder becomes available. We will be glad to explain the financial benefits you can enjoy.

¹This example assume quarterly payments and a 5.2 percent charitable midterm federal rate.

Please contact Mary Ludwig, Development Director at 712-732-5127, for more information.

The information on this site is not intended as legal, tax or investment advice. For such advice, please consult an attorney, tax professional or investment professional.

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