Audry Lasley established a charitable gift
annuity, providing a future gift to the church
that guarantees her a lifetime monthly income.
See her story: bandwidth - high /
low. |
By giving through a charitable gift annuity, you can make a meaningful gift
now that will allow you to receive additional income and gain meaningful tax
benefits.
What is a gift annuity?
It is a simple contract between you and the church. In exchange for your
contribution, Community of Christ promises to make fixed, guaranteed payments
for life to one or two annuitants (usually the donor[s], but not necessarily).
The amount paid is based on the age of the annuitant(s) at the time of the
gift.
What can a person give?
You can give gifts of cash, securities, or real property under the terms
of a charitable gift annuity and receive generous, fixed payments for life.
Even in times when investment returns are low, annuity payments generate
dependable income.
What are the tax benefits?
Because this is a charitable gift, an income tax deduction can be taken
the year the gift is given and up to five more years. In addition, a portion
of the annuity income is tax free or may be taxed at a lower rate than other
income. Gifts of appreciated assets often result in additional tax benefits.
Furthermore, assets given in exchange for a gift annuity are not included in a
person’s estate, so they are not subject to gift and estate taxes.
Example
A charitable gift annuity can work well for someone who wishes to make a
charitable gift to the church now, but needs income from their assets to cover
living expenses. For example, if you funded a gift annuity with $10,000 at age
75, you would receive $710 (7.1 percent of the amount) for your lifetime. Such
a plan would include
- transfer of $10,000 to the church in exchange for a charitable gift
annuity.
- annual lifetime payments of $710 each year, more than two-thirds of
which is tax free for the first twelve years.
- a charitable income tax deduction of more than $3,700 (amount varies).
- the estate is lowered by $10,000, offering potentially significant
savings in estate taxes.
- a significant gift is given to fund the mission of the church.
|
Gift Annuity Rates-Single Life |
|
Age |
Rate |
Age |
Rate |
|
65 |
6.0% |
78 |
7.6% |
|
66 |
6.1 |
79 |
7.8 |
|
67 |
6.2 |
80 |
8.0 |
|
68 |
6.3 |
81 |
8.3 |
|
69 |
6.4 |
82 |
8.5 |
|
70 |
6.5 |
83 |
8.8 |
|
71 |
6.6 |
84 |
9.2 |
|
72 |
6.7 |
85 |
9.5 |
|
73 |
6.8 |
86 |
9.9 |
|
74 |
6.9 |
87 |
10.2 |
|
75 |
7.1 |
88 |
10.6 |
|
76 |
7.2 |
89 |
11.0 |
|
77 |
7.4 |
90+ |
11.3 |
|
Rates as of July 1, 2003 (subject to change) |
Deferred Gift Annuities
The primary difference between deferred gift annuities and current gift
annuities is that payments are set to begin one year or more into the future.
This is ideal if you are planning to supplement future retirement income or
fund a grandchild’s college education for example. Deferred gift annuities
result in larger payout percentages and typically provide increased charitable
income tax deductions.
A representative from Estate and Financial Planning Ministries
is available to work with you. Everything is confidential. There is no
obligation and nothing to buy. Contact us at efpm@CofChrist.org,
or call 1-800-884-7526 (1-877-526-7526 in Canada).
