Charitable Gift Annuities
Charitable gift annuities are one of the oldest and simplest forms of deferred gifts.
An asset, for example, cash or marketable securities, is transferred to the Christian Church Foundation, which contractually guarantees to pay a specified annuity to the donor and/or another annuitant for life. The payout rate is determined by the ages of the annuitants.
At the death of the last annuitant, the charitable residual goes to any institution or ministry of the Christian Church (Disciples of Christ). The residual also can be divided among several ministries or used to create a permanent endowment for the church. If you enter into a Gift Annuity Agreement, you receive a charitable deduction for income tax purposes. The amount of the deduction is established by Treasury Tables. Another important feature of a charitable gift annuity is that a portion of your annual payment from the annuity may be tax-free throughout your life expectancy.
If you provide the Christian Church Foundation with the necessary information, we will, without obligation, tell you the amount of your deduction and the portion of your annual payment that is tax-free.
The maximum gift annuity rates are set by the American Council on Gift Annuities; however, choosing a lower rate may provide additional tax benefits and the likelihood of a larger charitable remainder. The table below shows a sample of the ACGA rates. The minimum gift annuity with the Foundation is $2,500.
Deferred Gift Annuities
Another type of charitable gift annuity is the deferred gift annuity. It works just like the charitable gift annuity, but in this case, the donor decides to delay, or defer, the gift annuity payments until a later time.
The donor can claim a charitable income tax deduction at the time the gift is made, but delay the start of payments until a time when additional income is needed.
Gift Annuity Rates
The following rates are examples of ones determined by the American Council of Gift Annuities, in which the Christian Church Foundation participates. Effective Jan. 1, 2012, the following rates are available.
One Life:
|
Age:
|
50
|
55
|
60
|
65
|
70
|
75
|
80
|
85
|
|
Percentage Rate:
|
3.7
|
4.0
|
4.4
|
4.7
|
5.1
|
5.8
|
6.8
|
7.6
|
Two Lives:
|
Age:
|
50/50
|
55/59
|
60/60
|
65/69
|
70/70
|
75/75
|
80/80
|
85/85
|
|
Percentage Rate:
|
3.1
|
3.7
|
3.9
|
4.4
|
4.6
|
5.0
|
5.7
|
6.7
|
Contact us today to learn more about Charitable Gift Annuities. You also may be interested Charitable Remainder Trusts.