Income for today, a gift for tomorrow.
Giving through a Charitable Gift Annuity allows you to arrange a generous gift to your community, while providing yourself a new income source you can count on for the rest of your life.
We set up a contract with you that combines immediate annuity payments with a deferred charitable gift. You receive a stream of income that is fixed, regardless of market conditions. Upon your death, we set up a charitable fund on your behalf.
Income from your Charitable Gift Annuity may add up to more than the interest and dividends you earned from holding the assets. You can use this income to supplement your own lifestyle, or that of someone else: a sibling, a dependent parent, a friend, or a former employee. You or a loved one can start receiving annuity payments immediately, or defer them to increase your charitable income tax deduction. A portion of the income may be a tax-free return of principal, while some is taxed as ordinary income or capital gains. The amount of annuity paid and the tax deduction received depends on the age of the recipient and the current annuity rate (as established by the American Council of Gift Annuities).
A Charitable Gift Annuity reduces estate assets and may reduce estate taxes. Plus, it’s easier to set up than a charitable trust and is backed by the general assets of your community foundation.
Example Donor Story
A caring, careful gift.
Angela Kline was always active in her community—generous with both her time and money. After she retired and began living on a fixed income, she worried that continuing to give would sacrifice her financial security. “There are some causes I wish I could still support, mostly focused on women and girls in our community,” said Angela. “But my investments are paying less than I had planned.” Her friend Carmen, a CPA, told Angela that she might consider establishing a Charitable Gift Annuity through her local community foundation. “This is a good choice for Angela,” says Carmen. “She is a very caring, generous person, but she also needs to feel financially secure.” By giving through her community foundation, Angela receives a fixed annuity payment that adds up to more than her former investment income. Plus, upon her death, her gift will create the Kline Fund for Women and Girls.
There is so much more we’d like you to know. For more information and ideas on ways to integrate your financial planning with charitable giving, ask your financial advisor or contact Tami Wenning at email@example.com.