By: Becky Pazkowski
Several people have approached me recently about making a charitable gift that produces income back to the donor, or a designee of the donor. There are several ways that this can be accomplished. One such way is through a vehicle called a Charitable Gift Annuity, and I would like to offer some details about this type of gift below.
A Charitable Gift Annuity provides a variety of benefits for the donor, including:
- Guaranteed fixed income based on your age at the time of the gift
- Tax deduction if donor itemizes
- Some of the income may be tax-free
- 1 or 2 people can receive the income
- There is no fee to establish the annuity
- There is a $1000 minimum to establish the annuity
- The gift is irrevocable
- We work with the United Church of Christ (UCC), United Church Funds
- At least 50% of the beneficiary must be a UCC affiliated organization (Plymouth Harbor is)
- Income you receive is based on your age, the highest rate is 9.0%
- Your gift can be made with cash or securities
- When the annuitant dies, the remaining principal passes to the beneficiaries
If you would like to know more about how to establish a Charitable Gift Annuity, or what rate you would receive, please feel free to contact me at email@example.com. We can work up an illustration based on your age and other details.