Charitable gift annuities
A charitable gift annuity from our community foundation is a way for you to receive a guaranteed income for life and an immediate income tax deduction, while at the same time, leaving a legacy to the charitable cause of your choice.
Through a charitable gift annuity, you receive a fixed stream of income for life. After paying the lifetime annuity to you and your spouse, the remaining principal is transferred to your named charitable fund to accomplish your specific charitable goals. Our payments to you are based on your age; the older you are, the higher the rate. If the annuity is for you and your spouse, the calculation is based on your joint ages. If you need the income now, you can use our deferred plan and receive the income tax deduction now, but begin receiving payments when you reach a specific age. This is an excellent complement to your existing retirement plan.
The tax advantages of both a current and deferred annuity are two-fold. First, you receive an immediate income tax charitable deduction when you create your annuity. This is based on your age and annuity payout rate. Second, a portion of the payments you receive may be treated either as tax-free return of principal or long-term capital gains. These tax advantages increase the net income you receive.
Through our Community Partner program, you can set up a charitable gift annuity to benefit the Community Foundation and/or one of several area nonprofits that are working with us to offer this benefit to their donors.
Contact our staff to receive a free, personalized analysis of your charitable gift annuity rate and tax deduction information or ask any questions. As these giving vehicles are complex and related to other estate planning, we encourage you to work with your lawyer or financial advisor.
Charitable remainder trusts
A community foundation can provide for the eventual transfer of property to charity after paying taxes, but we do not currently administer charitable remainder unitrusts or annuity trusts, both of which pay lifetime income to you or other named beneficiaries. |
