Charitable Gift Annuity
© Connie Gelb
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A charitable gift annuity is a great way for you to secure a steady stream of income and reduce your taxes while ultimately helping to
provide humanitarian assistance to retirees and caregivers around the state. It is simply a contract in which The
Retirement Resource Organization agrees to pay you and/or another beneficiary you designate fixed income for life. A charitable gift annuity can be an attractive giving option if you are concerned about meeting your current financial needs. You can also defer your annuity payments to meet your future financial needs.
Benefits / Gift Requirements
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Dependable Fixed Income - Receive fixed income for life.
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Immediate Tax Savings - You can take an income tax charitable deduction in the year you make your gift. If you fund your annuity with appreciated securities, you can avoid or defer capital gain taxes you would have paid had you sold the asset.
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Leave a LegacyYour gift will ensure
retirees and caregivers will be helped across future generations. Become a Legacy Club member.
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Minimum Age: 50
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Minimum Dollar Amount: $5,000 in cash or securities and $50,000 in real estate
How It Works (examples)
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Charitable Gift Annuity Funded with Cash
Thomas and Millie, both age 70, wanted to make a gift to support
fellow retirees having problems. They also needed a steady source of income for their retirement. So, they donated $50,000 in cash
for a gift annuity. They, jointly, and the survivor, will receive fixed lifetime annual payments of about $3,000. They also
qualified for an income tax deduction of approximately $14,000, and a portion of their annual payments will be tax-free.
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Charitable Gift Annuity Funded with Appreciated Stock
Elizabeth, a retired biology professor, wanted to make a significant gift to support
caregivers and retirees. However, as a 75 year-old widow, she also needed to increase her income. Years ago she and her husband purchased stock worth $2,000. Its value had appreciated to $50,000 but it only paid a 2% annual dividend. If she sold the stock, Elizabeth would have to pay a significant amount of capital gain tax. Instead, Elizabeth donated the stock to us and created a gift annuity. Based on her age and the size of her gift, she received an approximate income tax deduction of $21,000. She also received an annual payment rate of 7.1% or $3,550 per year, a portion of which is tax-free. Best of all, she knows her gift will ultimately
provide the material and financial assistance needed by other retirees and
caregivers for generations to come.
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Charitable Gift Annuity Funded with Real Estate
You would irrevocably donate your real estate to The
Retirement Resource Organization in exchange for a fixed annual income paid by the
Organization. You and/or another named beneficiary would receive a fixed dollar amount of income each year (generally paid quarterly) for the rest of your lives as well as receive an income tax deduction the year you make the gift.
Charitable Gift Annuity Rates
View the current annuity rates and IRS discount rates.
Planned Giving Calculator
Calculate your own potential benefits from a charitable gift annuity.
Contact Us
Would you like more information on charitable gift annuities, other gifts that provide income or becoming a Legacy Club member? Please contact us, e-mail
legacy@retirement-resource.org
or call us toll-free at (877) 855-3718.
If you would like a personalized proposal for a charitable gift annuity, please let us know the date(s) of birth for the income beneficiary(ies) and the gift amount you are considering.
Gift Planning Home | Life-Income Gifts Home | Comparison of Giving Options | Contact Us
Information provided on our Internet site is not intended to be tax or legal advice.
Rates used in examples are for illustrative purposes only. Please consult a qualified legal or financial advisor before making a gift.
| The Retirement Resource Organization, Inc. is a tax-exempt charitable organization under Section 501(c)(3) of the Internal Revenue Code.
Donations are tax-deductible. | |
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