Charitable gift annuities are the most popular life-income gift plan available to donors today. They provide the donor with a fixed income for life, an immediate tax deduction, and partial avoidance of capital gains tax (when funded with appreciated securities).
Annuity rates are locked in on the date of your gift and are dependent on your age.
- Gift annuities are easy to do through a simple, two-page contract.
- There are no fees involved with setting up a charitable gift annuity.
- Gift annuities are safe; your rate is locked in on the date of your gift and backed by all of our assets, not just the annuity reserve.
If, at age 65, you were to donate $10,000 of appreciated securities, with a cost basis of $4,000 to establish a charitable gift annuity, you would:
- Receive $630 a year, for life (6.3% annuity rate);
- Be able to take an immediate income tax deduction of more than $2,700;
- Avoid capital gains tax on over $1,600 of the appreciation amount;
- Part of your annuity payment will be tax-free during your actuarial life expectancy
Sample Gift Annuity Rates (as of 7/01/07):
A gift annuity can also be established at a future point of your choice. These are called deferred gift annuities. A deferred gift annuity is useful because it allows donors to build their assets, take a tax deduction, and provide a lasting gift to Alley Cat Allies. Deferred annuities offer higher rates and income tax deductions, compared to regular gift annuities.
- Deferred annuities are easy to establish through a simple two-page contract.
- There are no fees involved with setting up a deferred gift annuity.
- Deferred annuities are safe; your rate is locked in on the date of your gift and backed by all of our assets, not just the annuity reserve.
If, at age 60, you were to donate $10,000 of appreciated securities, with a cost basis of $4,000, to establish a deferred gift annuity that would begin payments when you reached age 65, you would:
- Receive $810 a year, for life (8.1% annuity rate)
- Be able to take an immediate income tax deduction of almost $3,000
- Avoid capital gains tax on over $1,700 of the appreciation
- Receive part of your annuity tax-free for your actuarial life expectancy
To learn more about charitable gift annuities and deferred annuities, please contact the Development team at 1-866-309-6207, or firstname.lastname@example.org.
To receive a personal example of how an annuity will benefit you, please fill out the secure form below. All inquiries are held in strict confidence.