Gift to Charity + Income Stream for Donor = Win-Win Situation
A charitable gift annuity is a contract between a donor and GCF that provides the donor and/or another beneficiary with a fixed annual annuity payment, an income tax charitable deduction payment, and at the death of the beneficiary(ies), establishes or pours into a endowed charitable fund at GCF.

The fixed annuity amount is based on the amount of the gift to the Foundation, the age of the annuitant(s) and the current gift annuity rate. Charitable gift annuity rates, recommended by the American Council on Gift Annuities, favor older donors. Click on their web site to get current gift annuity rates.  The older the beneficiary is at the time of the gift, the higher the guaranteed annuity rate will be.

The donor receives a current income tax deduction for the residuum (estimated amount that will go to GCF after the annuitants’ lifetimes). The annuity payment is composed of two parts: income and principal. The income portion is taxable as ordinary income. If the gift was made with appreciated securities, part of the annuity payment will be taxed at the capital gains rate. No tax is paid on the gift portion residuum that will go to the charitable fund at GCF. The residuum portion of the gift annuity helps the community by providing for permanently endowed funds at the Foundation. These funds can be for the unrestricted benefit of the community, can be designated to benefit the donor’s favorite charity or can be used to establish a permanently endowed donor advised fund whereby family members as the advisors, make grant suggestions from the distributable amount to public charities. Benefits of a charitable gift annuity include:
  • fixed income for life
  • income tax charitable deduction
  • deferred capital gains
  • diversified concentration of assets
  • simple to implementation
  • no cost to establish
  • benefits the region
Gift annuity illustrations are available by calling a member of the Giving Strategies Group at the Foundation. Professional advisors can run an illustration through the Planned Giving Design Center.

Benefits
Immediate:  Income tax deduction of $113,308. May save up to $43,737. Reduced capital gains tax. May save up to $20,090.

Annual:  Annual income of $26,000 for life, $4,095 tax-free.

Future:  GCF projected to have $343,574. Reduced estate taxes and administrative costs.

The Foundation Society recognizes people who have remembered GCF with a bequest in their will or other type of personal gift. For more information see: The Foundation Society: Recognizing Legacies.