Charitable Gift Annuity
“We Were Thankful for the Opportunity…
… to show our lasting appreciation for the love and care our son has received at Woods Services. We chose a Charitable Gift Annuity not only to help the work of Woods, but also to create a guaranteed fixed income stream for us.” - John and Beverly Anello
You, too, can give and receive.
Often people can’t afford to give up the earning power of their money with an outright gift to Woods. For many, a Charitable Gift Annuity can be a very attractive alternative.
Are you…
- Interested in helping the work of Woods Services?
- Discouraged by the current low interest rates on savings and investments?
- Looking for ways to double or triple your rate of return on investment without risk?
- Thinking about tax-favored investment opportunities?
- Concerned about taking care of yourself, your family or other loved ones?
What is a Charitable Gift Annuity?
It is a contract between Woods Services and you. In exchange for an irrevocable transfer of cash, securities or in some cases real estate, Woods will pay you and/or a beneficiary a fixed, guaranteed annual income for life. It is that simple and the benefits are substantial.
There are two options…
- Immediate Income
You determine the type and amount of gift you want to make. The minimum value of an annuity is $10,000. Then decide whether you will be the sole beneficiary or you want to add someone else, such as your spouse. The survivor will receive the same payments for life.
The fixed payment rate is set at the time the annuity is established. This rate follows recommendations made by the American Council on Gift Annuities and depends on the number of beneficiaries and their ages at the time of the gift.
You can take an immediate charitable deduction on your federal income tax for part of the amount you donate - typically 45-65% of the value of the gift annuity. In addition, a sizeable portion of each annuity payment is tax-free.
If the gift annuity is funded with appreciated securities, you can escape part of the capital gains tax and any reportable gain is spread out over a number of years. No capital gains tax is due at the time the gift annuity is established.
- Deferred Income
This plan is designed for those who are interested in supplementing future retirement income on a tax-favored basis. Annuity payments will be deferred until whatever date you select, such as the year you plan to retire. However, the tax deduction can be taken immediately.
The rate is set at the time your gift is established and, like the immediate annuity, depends on the number of beneficiaries and their ages at the time of the gift. The gift can consist of a single transfer or periodic transfers to the plan in your high income years.
The benefits are similar to those for the Immediate Income Annuity.
Sample Rates
For sample gift annuity rates based on your age, visit http://www.acga-web.org/ratesjuly03.html
This material contains general information about Charitable Gift Annuities. Consult with your legal and financial advisors when considering a gift.
