Receive a life income, determined by your age, in exchange for your charitable gift and qualify for multiple tax advantages.
Charitable gift annuities offer two key benefits: simplicity and a reliable income. When you establish a gift annuity with the Community Foundation, you or someone you designate receive a life income in exchange for your charitable gift. The annuity rate depends on the annuitant’s age. The older you are, the higher the rate. You must be at least 60 years of age to open a CGA at the Community Foundation. Staff can provide you with custom calculations of your payout.
Charitable gift annuities offer several tax advantages as well. Part of the gift qualifies for a federal income tax deduction. By transferring an appreciated asset to the Community Foundation, you will reduce and defer your capital gains tax and may reduce probate costs and estate taxes. (Check with your tax or financial advisor for detailed tax implications).
A deferred gift annuity allows you to receive payments later in life. This type of gift is attractive to younger donors who are planning for retirement. You will receive a higher rate and a lifetime income, based on when you want to start receiving payments (at least 12 months after establishing the fund). If you need current tax deductions and want to augment retirement income on a tax-sheltered basis, a deferred gift annuity is an excellent option.
Key benefits to remember:
- Provide income for life for you or your beneficiary
- Make an immediate, significant gift to the Community Foundation
- Attain more favorable current and retirement income tax position
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- Establish for as little as $10,000
- Lock in an attractive rate of return
- Save on probate and estate taxes
- Realize a charitable tax deduction and increase disposable income
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