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Receive an Income for Life and Save on Taxes When you create a charitable gift annuity with us, your donation is divided into two parts: an amount attributable to the charitable gift portion and the amount attributable to your annuity payments. If you itemize deductions on your tax return, savings from the federal income tax charitable deduction of the gift portion reduce your gift's net cost. If you fund your annuity with appreciated property rather than cash, you benefit even more because you are not responsible for the capital gains tax at the time of your gift. Instead, a portion of your payments will be taxed as capital gain (provided that you are the primary annuitant and the annuity interest is assignable only to the charity). Understanding Annuity Rates Based on life expectancy, older annuitants have higher annuity rates. Rates also vary according to the number of annuitants, with rates for two-life contracts often lower because of the extended period of time that payments will likely be made. On the next page you will see rates recommended by the American Council on Gift Annuities, which most organizations follow. Check with your estate planning attorney or our representative for current rates and applicable ages for gift annuity eligibility. The idea of a charitable gift annuity is nothing new, but its benefits will never grow old. In America, the concept dates back to 1843, when a Boston merchant donated money to the American Bible Society in exchange for a flow of payments. Today, a charitable gift annuity offers valuable tax benefits. But perhaps more valuable than the financial advantages is the satisfaction of helping continue the mission and good works of a charitable organization such as ours. charitable gift annuity: a contractual agreement between a donor and a charitable organization in which the donor gives assets in exchange for the organization's promise to provide the donor with payments for life annuitant: the person receiving the gift annuity payments California residents: Annuities are subject to regulation by the State of California. Payments under such agreements, however, are not protected or otherwise guaranteed by any government agency or the California Life and Health Insurance Guarantee Association. Oklahoma residents: A charitable gift annuity is not regulated by the Oklahoma Insurance Department and is not protected by a guaranty association affiliated with the Oklahoma Insurance Department. South Dakota residents: Charitable gift annuities are not regulated by and are not under the jurisdiction of the South Dakota Division of Insurance.

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