Gift annuities A way to take care of your financial future…as you give to others Charitable gift annuities are a way to provide for your financial future with a dependable lifetime income. Charitable gift annuities typically enjoy a higher rate of return than many conservative investments. A charitable gift is never subject to market fluctuations, so you’ll know exactly what you will receive. Plus, part of your income can be tax-free. Gift annuities offer you significant benefits:
Charitable income tax deduction — An important distinction between a charitable gift annuity and a commercial annuity is that a charitable gift annuity assumes that at the end of your life, a minimum of 50 percent of your original contribution will be available as a charitable gift to support our mission. As a result, the IRS allows a portion of every dollar that you contribute today to be tax deductible on your Form 1040 for this tax year. Capital gains tax savings — When you fund a gift annuity with appreciated stock or other assets (before the sale), the current tax law allows you to avoid much of the capital gains tax you would pay if you sold the asset yourself. In addition, any remaining capital gain that you incur is spread over the remaining years of your life, thereby reducing today’s tax liability. Your annuity payment is based on the value of the stock or assets on the day you transfer ownership to the CAMC Foundation. In exchange for your gift or cash, appreciated stocks or other assets, the foundation will give you an annuity contract that will pay you a fixed income for the rest of your life or the lives of both you and your spouse (or another beneficiary you designate). The percentage of income you receive is determined by your age (or ages for a two-life annuity). The older you are, the higher the rate we can offer you. One life annuity examples
|