The Charitable Gift (Community Life) Annuity lets you invest well
and feel good about it.
Quite simply, the Charitable Gift Annuity from The Community Foundation
is a new way for you to receive a guaranteed income for life, an
immediate income
tax deduction, and leave an everlasting philanthropic legacy while you’re
at it.
How safe is this investment?
In a word, completely. Your payments are guaranteed and backed up by all of
the assets of The Community Foundation. We’ve been in the business
of managing and investing charitable endowment funds since 1975. And our
investments are guided by top financial advisors.
What exactly is a philanthropic legacy?
After you and your spouse are gone, your annuity will continue to pay a charitable
dividend to the causes important to you both. The principal of your annuity
will be placed in an endowment fund in your name. You can choose where your
money is to go based on your interests, i.e. scholarship funds, children’s
health, the arts – or you can specify the non-profit charitable organization
of your choice. Or you can simply instruct us to use your charitable dollars
where they are most needed at the time. No matter which way you choose, you
can be sure that with our expertise in endowment management, your money will
do a world of good. Right here at home.
How much money are we talking about?
When you transfer cash or securities of more than $10,000 to The Foundation,
you will receive a fixed stream of income for life. After paying this income
to you (and your spouse, if you choose), the remaining principal of the annuity
becomes a permanent endowment fund.
Our payments to you are based on your age: the older you are, the higher
the rate (Please refer to chart). If the annuity is for you and your spouse,
the
calculation is based on your joint ages. You can choose to receive payments
quarterly, semi-annually, or annually. And if you don’t need the income
now, you can use our Deferred Plan and take the income tax deduction now but
start receiving payments when you reach a specified age (This is an excellent
complement to your existing retirement plans).
AGE
|
ANNUAL
INCOME RATE
Rates
effective as of 7-1-02 |
|
|
60 |
6.4% |
65 |
6.7% |
70 |
7.2% |
75 |
7.9% |
80 |
8.9% |
85 |
10.4% |
90
and over |
12% |
The tax advantages of this program are twofold. First, you’ll receive
an immediate income tax charitable deduction when you create your annuity.
This will be based on your age and income pay-out-rate. Second, the payments
you’ll receive may be partly income tax-free return of principal, or
taxed at the lower capital gains rates. As you can see, these advantages increase
the impact of the income you’ll receive even more.
Let us do a free personalized analysis for you.
For a free analysis showing your annuity rate and tax deduction information,
please talk with your financial advisor or call our office at 251-438-5591.
The Community Foundation of South Alabama is not engaged in rendering
legal or tax advice. This booklet is intended as a service to provide
general information about charitable giving. Prospective donors
are advised to seek the advice of a competent tax professional
before entering into an annuity agreement. The Alabama Securities
Commission does not insure or guarantee payments of gift annuities.
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