Invest in Our Future and Yours With a Charitable Gift Annuity

Although most people think of insurance companies when they think of annuities, your favorite charitable organizations also offers annuities. A CGA is a gift vehicle that pays you (and an additional annuitant, if you desire) a predetermined amount each year for life. The gift can be established with cash, securities or other property, and in return you receive fixed annuity payments on a regular basis.

The Financial Benefits

Aside from providing a gift to your favorite charitable organizations, your CGA will offer you the following benefits.

Charitable income tax deduction: The charitable income tax deduction varies according to your age and is taken in the year the gift is made.

Favorable capital gains treatment: If you make the gift with appreciated property, you generally avoid paying up-front capital gains taxes on the gift portion of the transfer.

Tax-free portion: The payments you receive may be partially tax-free, whether they commence now or in the future. For gifts established with appreciated property, the payments will also be partially taxed at capital gains tax rates.

Lifetime payments: You (and/or a second individual) receive a fixed and secure amount for life. Generally, the older the donor, the higher the payment. With a deferred charitable gift annuity, the donor's age and the time payments begin will determine the annual rate received.

Estate taxes: If you are the sole annuitant, the payments cease at death and are not included as part of your estate. If your spouse is the remaining annuitant, his or her interest may qualify for the estate tax marital deduction. If an individual other than a spouse is the remaining annuitant, the value of the remaining payments is included in your estate for estate tax consideration.

Figuring Your Annuity Rate

In addition to the ages of the annuitant(s), rates are also adjusted according to the number of annuitants. While the annuity rate is a matter of agreement between you and your favorite charitable organizations, maximum rates are recommended by the American Council on Gift Annuities. Check with your financial advisor or our representative for current rates.

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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