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Charitable Gift Annuities
A lasting contribution — and income for life
A Charitable Gift Annuity is an agreement between a donor and the Jewish community that benefits both. In exchange for a gift to the Jewish community, donors receive a guaranteed fixed income for life — beginning at age 65.
Tax benefits
A portion of the gift qualifies for a current income tax charitable deduction, thereby reducing taxes now, while the full value of the gift is removed from the donor's estate. In addition, part of the annuity payment may be tax free.
If the donor uses appreciated securities to fund a gift annuity, no capital gains taxes are due at the time of the contribution. Instead, a portion of the income from the annuity will be subject to capital gains tax, which will be paid in future years.
Income for life
The gift annuity may make payments during the donor's lifetime, or during the lives of both the donor and his/her spouse. If the donor is younger than 65, annuities may be purchased periodically in order to build a tax-advantaged retirement plan which begins making payments at age 65.
Benefits
A Charitable Gift Annuity offers several financial and philanthropic benefits such as:
- A guaranteed annual income
- Higher yields than many other alternatives
- Current charitable income tax deduction
- A portion of annual income is tax free
- A reduction in estate taxes
- The opportunity to make a significant gift to the Jewish community
- A gift to the Jewish community today will allow your client to be there for family, community and the Jewish people — whenever help is needed in the future.
At a glance:
- Provides income beginning at age 65 for the donor, or for the donor and his/her spouse
- Offers income and estate tax benefits
- Enables donors younger than 65 to build a tax-advantaged retirement