Planned Giving
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Charitable Gift Annuity: The Details
Is this gift right for you?
A gift annuity is for you if…
- You want to make a significant gift to us and receive lifetime payments in return.
- You want to maximize the payments you receive from your planned gift — and you want to lower your income tax on those payments.
- You want the security of payment amounts that won't fluctuate during your lifetime. If you want income to vary with market conditions, consider a charitable remainder unitrust.
- You also appreciate the safety of your payments being a general financial obligation.
- You like the idea of supplemental income you can't outlive.
- You want to create a life income gift through your IRA. Discover more here.
A deferred gift annuity is for you if…
- You are in high earnings years, looking for both income tax savings now and an additional source of revenue when you retire. Read More about a Deferred Gift Annuity
Of all the gifts that pay you back, the charitable gift annuity is the simplest, most affordable, and most popular. You make a gift to the Diocese and in return, you receive fixed payments for life. The gift agreement is a simple contract. Your payments become an obligation, are fully backed, and will not fluctuate.
When the contract ends, the balance of the gift annuity will support the overall mission of the Diocese.
Gift annuities offer attractive tax benefits:
- You will receive a federal income tax deduction for a portion of your gift, based on the full value of the assets you contribute minus the present value of the life-income interest you retain.
- If you fund your charitable gift annuity with appreciated securities, naming yourself as beneficiary, no capital gains tax is due on the transfer. Only a portion of your capital gain will be reportable, and the tax will be spread over your annuity payments.
- Part of each annuity payment will be treated as tax-free return of your principal. This effectively increases the yield from your annuity over your life expectancy.
Your gift annuity can start payments once you have made your contribution (an immediate payment gift annuity), or payments can begin at a later date selected by you (a deferred payment gift annuity). Deferral entitles you to a higher annuity rate and generates a larger charitable deduction.
Most Common Uses
- Supplement Income in Retirement — If you have already retired and want to increase the yield from low dividend stocks or other interest-bearing assets, a charitable gift annuity can provide you with guaranteed fixed income for life at a rate higher than most dividends, CDs or savings accounts. Best of all, when the annuity matures, you support our mission.
- Income to Aging Parents — Many members of the "sandwich" generation face the difficult task of caring for children at the same time they are providing help and support for aging parents. Frequently these parents do not want to take money from their children, causing them financial hardship. A charitable gift annuity with us can provide payments or direct deposit to your aging parent or parents now and a gift to us later, all while providing you with both peace of mind and an income tax deduction.
Planning points
- A charitable gift annuity can be created with a minimum gift of $10,000 or more.
- Gift annuities bring the benefits of a life-income gift into reach for many donors.
- Your gift annuity can make payments to a maximum of two people.
- Gift annuity rates are partly determined by the age of the beneficiary.
- Younger donors may find planning benefits in a deferred gift annuity.
Please contact us so that we can assist you through every step of the process.
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