Support Charities and Create a Lifelong Stream of Income with a Charitable Gift Annuity

In REPORT Newsletter

If you want to donate to charity but are concerned about how it might affect your income in later years, you may want to consider setting up a charitable gift annuity. A charitable gift annuity is a good choice if you want to leave a permanent legacy for the community and generate income for yourself or others in the near term.

You can create a charitable gift annuity with cash or readily marketable securities, such as stocks, bonds, or mutual funds. Although most donors name themselves as annuity beneficiaries, payments from your gift annuity can provide income for anyone: you, your spouse, another relative, or a friend. You determine when to begin receiving gift annuity payments, either when the annuity is established or at a future date. Older beneficiaries receive favorable fixed rates for their payments. For example, the current rate for a single-life gift annuity for a 75-year-old individual is 5.4%

Payment of your charitable gift annuity is backed by the assets of the Community Foundation. Because annuity payments are fixed over the term of the annuity, regardless of changes in the economy, you’ll have a stable source of income. Gift annuities provide an immediate tax deduction for the year in which they are created. Gift annuities also can help avoid capital gains taxes when funded with appreciated property.

A charitable gift annuity is a way to make a substantial gift to the community and to receive tax advantages now, annual annuity payments, and additional tax benefits throughout your lifetime.

To establish a Community Foundation Charitable Gift Annuity, please contact Philanthropic Services at 313.961.6675.