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 $5,000.

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, 2015, 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

7.8


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.


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Meet Ken Coy


Ken Coy met June while working in the kitchen of Eureka (Ill.) College. That work experience developed into a lasting relationship that continued for 61 years until June’s death in 2014.

Their relationship was based not only on their love for each other, but their love for ministry and the church. June graduated before Ken and began a ministry as the director of Christian Education at First Christian Church in Charleston, WV. She returned to share graduation day for Ken, which also served as their wedding day. Their journey, now as a married couple, led them to Lexington Theological Seminary. Prior to his graduation from LTS, Ken was ordained in his home state of Illinois.

Serving Disciples congregations in Kentucky, Illinois and Ohio, Ken and June sought to support the denomination that they loved. It was natural that they created an estate plan to benefit their two children and favorite church causes.

In 2011, Ken and June modified part of that plan to not merely support those ministries after their death, but to provide some additional revenue to support them in their senior years. Particularly, Ken wanted June to have sufficient income if he were to die first. Their primary source of retirement income was the Pension Fund, but if Ken would die first, June’s income would have been reduced by 50% and she would have lost the benefit of a housing allowance.

They contacted the Foundation and established a charitable gift annuity. Ken and June would have the added security of a guaranteed annuity payment for as long as they lived, and at their deaths the ministries that they supported would receive the residual charitable balance. As Ken said, “The charitable gift annuity satisfied both of our hopes. It provided added security should I die before June and assured that we would continue to support the ministries that we loved, even after our deaths.”

While June’s untimely death in 2014 removed the concerns about providing for her, Ken is grateful for the annuity payments that continue to assist him. After 62 years in ministry, Ken continues to be actively involved in the life of Northwest Christian Church in Columbus, OH, and in the Ohio Region.