A gift annuity is an agreement between an individual and a qualified charitable organization or institution. The donor transfers assets to the organization and receives fixed payments for the rest of his or her lifetime and/or the lifetime of another person, if desired.
Yes. Since a portion of your gift will be used for charitable purposes, you are entitled to a federal (and perhaps state) income tax deduction in the year you make your gift. Part of each payment is tax free for a period of years as well.
A number of factors, including the amount you place in the gift annuity and your age at the time the annuity is created.
Part of the amount you transfer is returned to you over your life expectancy, and life expectancy changes with age. Generally, the older you are when your gift annuity begins, the higher your rate of payment.
Not your rate of payment on a particular gift annuity agreement. The rate is set and fixed when your annuity begins. But if you give for additional gift annuities - as many people do - the rate will generally be higher for each agreement made in subsequent years.
One of the attractive features of the gift annuity is that they are designed with this possibility in mind. The gift annuity agreement requires that payments are to be made for a long as an annuitant (a recipient of payments) lives.
No. Payments are never lowered or raised regardless of changes in interest rates or the national economy. All net assets of the charitable recipient stand behind your agreement.
You can designate a loved one to receive the payments either with you, instead of you, or only following your death. This can result in a double gift - one to the charitable entity and another to a relative or special friend.
Annuity payments may be made for the lives of as many as two persons. Since the period of their combined life expectancies is typically longer than one person's life expenctancy, the rate of payment will be somewhat lower. Payment rates for two-life annuities are available upon request.
Yes. Often the tax benefits are even greater if the securities have increased in value because you may avoid the tax on a portion of the capital gain in the property. If you give a low-yielding asset, you may be able to increase your income, since a gift annuity may pay more and be taxed more favorably than other income.
No. If payments are made to you only, the gift portion goes directly to the charitable recipient, thus avoiding estate taxes and probate costs. Some estate tax may be due if payments are made to a survivor other than a spouse.
No, payments may begin anytime.
A gift annuity can be created with a minimum of effort. The first step is to contact us. In less than one minute, you can give us the information we need to prepare a personalized Gift Annuity proposal designed especially for you. There is no cost or obligation, and your inquiry will be treated in complete confidence. Our services are also free.
© 2008 Florida Baptist Financial Services, Inc.