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Para ayuda en español, por favor
llame al (800) 668-8016 y pida
hablar con Gloria o Enrique.
Charitable Gift Annuities
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The charitable gift annuity is one of the oldest and simplest forms of a deferred gift. An asset, for example, cash or marketable securities, is transferred to the Christian Church Foundation, which contractually guarantees to pay a specified annuity to the donor and/or another annuitant for life. The payout rate is determined by the ages of the annuitants.
At the death of the last annuitant, the residual goes to your congregation or to any institution or ministry of the Christian Church (Disciples of Christ). The residual also can be divided among several ministries or used to create a permanent endowment for the church. If you enter a Gift Annuity Agreement, you receive a charitable deduction for income tax purposes. The amount of the deduction is established by Treasury Tables. Another important feature of a charitable gift annuity is that a portion of your annual payment from the annuity may be tax-free throughout your life expectancy.
If you provide the Christian Church Foundation with the necessary information, it will, without obligation, tell you the amount of your deduction and the portion of your annual payment that is tax-free.
The Christian Church Foundation uses the rates recommended by the American Council on Gift Annuities, which apply to both males and females. The table below shows a sample of these rates. The minimum gift annuity with the Foundation is $2,500.
An Example of a Gift Annuity
Mrs. Smith, age 75, has a $10,000 certificate of deposit that is paying her 2.5 percent. She is in the 27 percent income tax bracket. She would like to make a gift to her church but needs to retain the income for her lifetime. Mrs. Smith sends $10,000 to the Christian Church Foundation and enters into a Gift Annuity Agreement. At her age she will receive annual annuity payments of $710 (7.1 percent of annuity). For income tax purposes, she has a charitable deduction of $4,006. Her payments will be sent to her quarterly. Of the $710 she will receive, $495.30 will be tax-free for the period of her life expectancy and $214.70 will be ordinary income.
Gift Annuity Return Rates
The following rates are examples of ones determined by the American Council of Gift Annuities, in which the Christian Church Foundation participates. For further information or for a specific quote, contact the Foundation. Note: Effective July 1, 2008, gift annuity rates as determined by the American Council on Gift Annuities will be lowered. To lock in the current rate, the new charitable gift annuity must be completed prior to June 30, 2008.
One Life (Through June 30, 2008):
| Age: | 50 | 55 | 60 | 65 | 70 | 75 | 80 | 85 |
| Percentage Rate: | 5.3 | 5.5 | 5.7 | 6.0 | 6.5 | 7.1 | 8.0 | 9.5 |
Two Lives (Through June 30, 2008):
| Age: | 50- 50 |
55- 59 |
60- 60 |
65- 69 |
70- 70 |
75- 75 |
80- 80 |
85- 85 |
| Percentage Rate: | 4.7 | 5.0 | 5.4 | 5.7 | 5.9 | 6.3 | 6.9 | 7.9 |
Deferred Gift Annuity
Another type of charitable gift annuity is the deferred gift annuity. It works just like the charitable gift annuity, but in this case, the donor decides to delay, or defer, the gift annuity payments until a later time.
The donor can claim a charitable income tax deduction at the time the gift is made, but delay the start of payments until a time when additional income is needed.
Because there are so many variables in working with deferred gift annuities, please contact the Christian Church Foundation at (800) 668-8016 or contact us via e-mail for more information.
The Christian Church Foundation does not render legal, tax or other professional advisory services. Advice from an attorney and other professional advisors should be sought when considering charitable giving.
