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Charitable Gift Annuities are a form of gift that provides you with a guaranteed fixed annuity income for life at a generous fixed rate of return unaffected by fluctuating interest rates. You simply make a gift of cash, appreciated securities, or other assets to CCF and, in exchange, receive fixed payments on an annual, semi-annual or quarterly basis for the rest of your life. The annual income is based on a fixed percentage (determined by the donor’s age) of the original donation, while the tax deduction is determined by the charitable remainder. The remainder of gift annuities issued by CCF are used to benefit the charitable purposes of the Foundation in cooperation with the donor.
While the primary objective is to fulfill the donor’s charitable intent, this option offers other benefits – namely, a guaranteed fixed income for the lifetimes of one or two people, and favorable tax treatment. Donors find Charitable Gift Annuities an attractive option when they have assets that have appreciated significantly because Charitable Gift Annuities help defer and reduce capital gains tax. Also, donors may receive tax-free income for a portion of the annuity depending on their age. A minimum $10,000 is required to set up a Charitable Gift Annuity.
EXAMPLE: A cash gift of $10,000 from a 75-year old donor currently receives 7.17% annuity rate or $710 annually for life. The donor is also eligible for a $4,081 Federal income tax deduction (IRS discount rate of 4%). The donor designates how the remainder is to be used upon death (such as, to establish an endowment fund to benefit the donor’s parish or other charitable organization).
If you would like to see how a Charitable Gift Annuity would work for you, we invite you to use our Gift Calculator. For more detailed illustrations, please Contact Us.
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