Gifts that pay you: Charitable Gift Annuities
The oldest and best known of charitable gifts that pay donors income for life is the charitable gift annuity. Charitable remainder trusts also pay donors income for life, and give them an immediate income tax deduction and relief from capital gains tax, but the charitable gift annuity payments are also guaranteed by the issuing charity. The payments are fixed and so completely predictable. The charitable gift annuity allows you to make a gift to a good cause while giving you a current income tax deduction and payments for life. In this way, some donors discover they can make a far more generous future gift to Pets Unlimited than they thought possible.
A gift annuity is simple to create. You fund your annuity with a gift of cash or stock. You are then paid a guaranteed fixed amount monthly, quarterly, semiannually or annually for life. You must be at least 60 when the payments begin and your annuity must be created with gifts having a total value of at least $10,000.
Your gift annuity can provide payments for one or two lives. Both plans generate an immediate charitable tax deduction and partially bypass capital gains tax. In addition, part of your payment will be tax-free and all of your gift will pass to Pets Unlimited free of estate tax.
Pets Unlimited Gift Annuity Program: The Pets Unlimited gift annuity program appeals to those who prefer predictable payments to variable income. A Pets Unlimited gift annuity provides fixed guaranteed payments to donors along with the satisfaction of making a significant future gift to Pets Unlimited. Annuity rates vary with age. The older you are, the higher your rate. Payments once established remain the same for life.
The following are single life annuity rates:*
Age |
Current Rates |
65 |
4.7% |
70 |
5.1% |
75 |
5.8% |
80 |
6.8% |
85 |
7.8% |
90+ |
9.0% |
*Rates in force as of January 1, 2012 and differ for two-life annuities.
Please note that annuity rates change from time-to-time. Those listed and the example given may understate or overstate the actual rates in place. For an estimate of your rate and deduction, confidentially provided, please contact our planned giving specialist, Phil Murphy at 415-457-7482 or pgphil@earthlink.net.
Example: Mary Richards, age 75, funds a $10,000 charitable gift annuity contract to benefit Pets Unlimited. Her annuity payment is 5.8% of her gift, giving her an annual guaranteed payment for life of $580. $476 of her payment is tax-free for twelve years. She also receives an immediate income tax deduction of $4,102.
Can you provide me with an estimate of my tax and income benefits?
Yes, we can provide you with estimates of the tax and income benefits you will receive if you take out a charitable gift annuity, or create a charitable remainder trust. We need to know the birth dates of those who will receive income from these charitable tools and the kind of gift you have in mind (cash, or real estate). These calculations are for educational purposes only and should be reviewed by qualified independent advisers of your choosing. For calculations confidentially provided, please contact Leah Prassinos, at (415) 568-3052 or at lprassinos@petsunlimited.org.
