What Is a charitable gift annuity?
A charitable gift annuity is a lump-sum gift to CFWNC, from which donors or their designated beneficiaries receive annual payments, determined by the amount of the gift, age(s) of the beneficiary(ies) and annuity rates in effect at the time of the gift. Beneficiaries must be aged 60 or over before annuity payments can begin. Once the beneficiary(ies) are deceased, the remainder of the annuity is added to an endowed fund at The Community Foundation, created or selected by the fundholder.
What Are the Advantages?
- Although most fundholders name themselves as annuity beneficiaries, payments from your gift can provide income for anyone: you, your spouse, another relative or a friend.
- You determine when to begin receiving annuity payments, either when the annuity is established or at a future date.
- 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.
- Annuities provide an immediate tax deduction for the year in which they are created, or you can carry the deduction forward for up to five years. Annuities also can help avoid capital gains taxes when funded with appreciated property.
- Annuities funded with low-yield assets can often increase the current income you receive on those assets.
- Payment of your annuity is backed by the assets of The Community Foundation.
What Can I Give?
You may create a charitable gift annuity with cash or readily marketable securities, such as stocks, bonds or mutual funds.
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 want to use assets in a way that simultaneously addresses charitable objectives, income requirements and tax avoidance strategies.
- You want to help support a family member (such as an aging parent) while fulfilling charitable objectives.
How do I create a charitable gift annuity?
A charitable gift annuity is a contract between you and The Community Foundation and requires only a simple agreement to establish. While you do not need the services of an attorney to establish a gift annuity, we encourage you to consult with your legal and/or financial advisors to ensure that a charitable gift annuity is a good fit for achieving your overall financial and estate planning goals.
Contact our Development Staff and we will create your agreement and handle all the details.
A charitable gift annuity is a great way to make a substantial gift and receive tax advantages now.