Charitable Gift Annuity
The ideal solution for those with the desire to set up a planned gift
but also needing financial security is a charitable gift annuity. A gift
annuity works well for persons over 65 and ranges between $10,000
and $50,000. Once the amount of the gift is determined, a fixed
stream of income is calculated combined with a deferred charitable
gift. The donor also receives an immediate tax deduction for the
charitable portion of the gift. Payments are received to the donor
quarterly. Upon death, the Promise for Haiti Endowment Fund can
be designated to receive a gift.
With a gift annuity, the percent of interest is determined on a sliding
scale which factors the age of the donor. Persons older than 85 years
old can realize interest rates in the 8% to 9% range.
Appreciated stock can also be used to establish the gift annuity.
Example: Bob (72) and Elaine (68) have 1,000 shares of stock paying
a dividend of $920/yr. They own appreciated stock or mutual fund
shares and have considered selling some of the shares and
reinvesting the proceeds to generate more income but they have
hesitated not wanting to pay capital gain tax.
Using the current ACGA* rate for a 2 life CGA, Bob and Elaine will
receive $2,250/yr with the stock gift of $42,530. The remainder of the
assets will go to Charity.
They want to count on fixed payments, unaffected by interest rates/
stock prices which they cannot outlive. They also want to assure the
continuation of payments to a surviving spouse without the delay of
*American Council on Gift Annuities