When you are looking for ways to help Family Renew Community with our mission of hope for homeless families with children, you shouldn't feel like you are choosing between your philanthropic goals and financial security. A charitable gift annuity offers a lifetime income stream and tax benefits that are both immediate and ongoing.
Say that Roger, 66, and Jessica, 65, want to make a contribution to Family Renew Community that will support our mission well in the future, but they also want to ensure that they have dependable income during their retirement years. They establish a $20,000 charitable gift annuity through our foundation partner. Based on their ages, they will receive a payment rate of 3.9%, which means that they will receive $780 each year for the remainder of their lives ($662 of which will be federally tax-free for the first 24 years). They're also eligible for an upfront federal income tax charitable deduction of $3,770* when they itemize. Finally, they know that after their lifetimes, the remaining amount—likely to be $10,000, based on life expectancy — will be used to help homeless families.
*Based on a 0.6% charitable midterm federal rate. Deductions and calculations will vary depending on your personal circumstances.
If you are younger than 55 or don't need your payments immediately, you can set up a deferred gift annuity. This allows you to delay receiving payments until a later date — such as when you reach retirement.
While cash is the simplest way to fund a charitable gift annuity, you may also use appreciated securities, closely held stock, real estate, tangible personal property or other selected assets.
Contact Denise O’Toole Kelly (386) 239-0861 or email@example.com to request a personalized, detailed illustration for a charitable gift annuity.
Seek the advice of your financial or legal adviser.
Information contained herein was accurate at the time of posting. The information on this website is not intended as legal or tax advice. For such advice, please consult an attorney or tax adviser. Figures cited in any examples are for illustrative purposes only. References to tax rates include federal taxes only and are subject to change.
Use this handy calculator to estimate the value of your charitable gift annuity to you and to Family Renew Community.
Your charitable gift annuity contract will be between you and the National Gift Annuity Foundation, with Family Renew Community named as the beneficiary.