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A Charitable Gift Annuity is an agreement between your client
and the Jewish community that benefits both. In exchange for
a gift to the Jewish community, your client will 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 your client's estate.
In addition, part of the annuity payment may be tax free.
If your client 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 your client's lifetime,
or during the lives of both your client and his/her spouse.
If your client 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 your client, or
for your client and his/her spouse
- Offers income and estate tax benefits
- Enables donors younger than 65 to build a tax-advantaged
retirement
More...
>>
Get a complete legal and tax overview of charitable gift annuities
and other deferred gifts in GiftLaw Pro under "Chapter
3—Deferred Gifts".
>> Do a calculation
of the potential tax benefits of establishing a charitable
gift annuity
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