Charitable Gift Annuity
A charitable gift annuity will help ensure that your caring and concern for children will continue to provide health and hope for future generations to come.
PHOTO: Plan staff
A charitable gift annuity is an agreement between a donor and a charitable organization like Plan USA.
In return for a donation of cash, appreciated securities or other property held for more than one year, the charity agrees to pay a fixed payment for life to you and/or to a friend or family member. You also can claim a charitable tax deduction. If a donor funds a gift annuity with long-term capital gain property, you will have to report only some of the gain, and may be able to report it in installments over several years.
Deferred Gift Annuity
A deferred charitable gift annuity is usually established by younger donors to supplement future retirement income. Payments begin on an agreed upon date in the future. The deferred gift annuity pays a guaranteed fixed income for life to the donor and/or other beneficiary; annuity income may be partially tax-free; the gift generates a federal income tax deduction; and assets exchanged for the annuity may avoid or reduce federal estate and probate expenses.
Donor stories*
Jack and Joanne Tatham have been sponsors with Plan USA for over 17 years, and in 1999 they decided to establish a Charitable Gift Annuity for $20,000 with Plan USA.
"We wanted to do something helpful, but we didn't want to eliminate much of our future income. It was a way to accomplish both of our goals," said Jack. "Plan USA is an organization where a great deal can be done with the investment that you make."
"It's both a financial investment, as well as an investment in humanity," added Joanne. "A person can make a difference on a larger scale."
The Tathams used highly appreciated, low yielding securities to fund their Charitable Gift Annuity. "We used securities that had grown a lot, and that way we could give more than if we'd sold the stock and donated the cash," commented Jack. "The tax deductions were the clincher."
The Tathams like their Charitable Gift Annuity because they often forget that they've set it up. "Then I get a surprise check every three months for $300!" said Jack. "You make the arrangement, and then the check is like extra money that comes in." Jack is also pleased that he set up his annuity with appreciated stocks and avoided the capital gains tax. "Plan USA gets the appreciation in the stocks, not the government."
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* These donor stories are for illustrative purposes. Each story is based on an actual gift case or a combination of cases. The pictures and names may be representative of the actual donors who were involved in either the cases or the combination of cases.
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In return for a donation of cash, appreciated securities or other property held for more than one year, the charity agrees to pay a fixed payment for life to you and/or to a friend or family member. You also can claim a charitable tax deduction. If a donor funds a gift annuity with long-term capital gain property, you will have to report only some of the gain, and may be able to report it in installments over several years.
Deferred Gift Annuity
A deferred charitable gift annuity is usually established by younger donors to supplement future retirement income. Payments begin on an agreed upon date in the future. The deferred gift annuity pays a guaranteed fixed income for life to the donor and/or other beneficiary; annuity income may be partially tax-free; the gift generates a federal income tax deduction; and assets exchanged for the annuity may avoid or reduce federal estate and probate expenses.
Donor stories*
Jack and Joanne Tatham have been sponsors with Plan USA for over 17 years, and in 1999 they decided to establish a Charitable Gift Annuity for $20,000 with Plan USA.
"We wanted to do something helpful, but we didn't want to eliminate much of our future income. It was a way to accomplish both of our goals," said Jack. "Plan USA is an organization where a great deal can be done with the investment that you make."
"It's both a financial investment, as well as an investment in humanity," added Joanne. "A person can make a difference on a larger scale."
The Tathams used highly appreciated, low yielding securities to fund their Charitable Gift Annuity. "We used securities that had grown a lot, and that way we could give more than if we'd sold the stock and donated the cash," commented Jack. "The tax deductions were the clincher."
The Tathams like their Charitable Gift Annuity because they often forget that they've set it up. "Then I get a surprise check every three months for $300!" said Jack. "You make the arrangement, and then the check is like extra money that comes in." Jack is also pleased that he set up his annuity with appreciated stocks and avoided the capital gains tax. "Plan USA gets the appreciation in the stocks, not the government."
* * * * *
* These donor stories are for illustrative purposes. Each story is based on an actual gift case or a combination of cases. The pictures and names may be representative of the actual donors who were involved in either the cases or the combination of cases.
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