Planned Giving Option: Charitable Gift Annuity

Planned-Giving-CGAA Charitable Gift That Also Provides You With Income

One of the most popular planned giving options is one that supports you during your lifetime and supports charitable works is perpetuity: the charitable gift annuity. As the name suggests, a charitable gift annuity has two important elements: an outright charitable gift and the purchase of an irrevocable, fixed-income annuity contract. The charitable gift entitles you to certain tax benefits, while the annuity provides you an income stream.

 

How it Works

1. You transfer an asset such as cash or publicly-traded stock, valued at $25,000 or more to the YBBBS Foundation
2. The Foundation agrees to make fixed annuity payments for the lifetime(s) of one or two recipients.
3. Your payout rate is determined by your age(s). The Foundation follows the interest rates established by the American Council on Gift Annuities shown below.
4. Payments can begin immediately if you are 55 years of age or older, or payments can be deferred to future years or for retirement.
5. The Yavapai County Community Foundation has agreed to partner with the YBBBS Foundation and administer all of our charitable gift annuities.

Advantages

Tax Benefits
You receive an income tax deduction for the charitable portion of your gift. Once you begin to receive annuity payments, a percentage of your payment may be taxable as ordinary income, a portion may be taxed at the lower capital gains rate and a portion may be a tax-free return of your principal.

Fixed Payout Rate
Payout rates are based on age (see table). The payout percentage is multiplied by the gift annuity value to determine the annual amount of the annuity Payment which can be made annually, semi-annually, quarterly or monthly, according to your needs.

For Example:

Age Single Life Rate Two Lives Rate
55 years 4.0% 3.5%
60 years 4.4% 3.9%
65 years 4.7% 4.2%
70 years 5.1% 4.6%
80 years 6.8% 5.7%
90+ years 9.0% 8.2%
As of March 26, 2016. Rates subject to change. Complete rates available at http://www.acga-web.org. Two lives rates shown are based on both spouses being the minimum age; payout rates are higher if one spouse is older.

Your Gift Keeps on Giving
When the last surviving beneficiary passes, the remaining assets will be added to our endowment and fund the work of YBBBS in perpetuity.

 

Compare Planned Giving Options

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