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

Other considerations:

• 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

 Illustration below:

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 beckyp@plymouthharbor.org. We can work up an illustration based on your age and other details.