Charitable Gift Annuities

Susan Wilson is retired and lives mostly on her investment income. While she has sufficient assets to make her financially secure, she is disappointed that her interest income has declined steeply. Susan is also a caring person who strongly believes that people should “give back” to the causes that are important to them.

When a $20,000 certificate of deposit matured recently, Mrs. Wilson considered giving those funds to a charity in her community, particularly in light of the low interest rates offered on a new CD. However, she did not feel comfortable giving up the income.

A charitable gift annuity was the perfect solution. She contributed the $20,000 to her favorite charity, and in return, the charity agreed to pay her $1,200* annually for as long as she lives. Of the $1,200 income, $650 will be tax-exempt. Additionally, Mrs. Wilson will be able to claim a charitable contribution deduction of $4,590 on her next income tax return. When Mrs. Wilson passes away, the funds from the annuity will be used to further the cause of her local charity.

A charitable gift annuity can also be funded with appreciated stock that may be a bit too volatile for comfort in these uncertain times. The donor can stabilize her income and receive favorable tax treatment on the capital gains.

A WIN — WIN SITUATION

A Charitable Gift Annuity offers guaranteed income with no investment worries or responsibilities. It also provides a way for you to make a significant and enduring gift to improve the quality of life for your community.

*Amount of income depends on age of annuitant. Example based on age 60.