Charitable Gift Annuity - Now Paying Higher Rates
You may be tired of living at the mercy of the fluctuating stock and real estate markets. A charitable gift annuity can provide stability for your retirement while allowing you to leave a legacy of Gorge protection.
A charitable gift annuity is a gift made to Friends through the Oregon Community Foundation that can provide you with a secure source of fixed payments for life. You may have heard that charitable gift annuity rates have risen recently, which is another reason Friends donors are taking a look at gift annuities.
You have several options for funding a charitable gift annuity. In addition to fixed payments for life you will also receive numerous tax benefits.
|Annuitant Age||Single Life Annuity Rate|
Tax Benefits of a charitable gift annuity
- Receive a charitable income tax deduction in the year you make the gift.
- A portion of your annuity payment is tax-free for your life expectancy.
- Receive a partial elimination of capital gains taxes when you use appreciated assets to fund an annuity.
How a charitable gift annuity works
A charitable gift annuity is a contract between you and the Oregon Community Foundation (OCF) on behalf of Friends of the Columbia Gorge.
- You transfer cash or appreciated securities to OCF.
- In exchange, OCF signs an annuity contract and promises to pay fixed payments to you for life. The payment can be quite high depending on your age, and a portion of each payment may even be tax-free.
- You will receive a charitable income tax deduction for the gift portion of the annuity.
- You also receive satisfaction in knowing that you will be helping further Friends' mission.
If you decide to fund your gift annuity with cash, a significant portion of the annuity payment will be tax-free. You may also make a gift of appreciated securities to fund a gift annuity and avoid a portion of the capital gains tax.
If you have any questions about charitable gift annuities, please contact us. We would be happy to assist you and answer your questions.
Current charitable gift annuity (payments begin within one year). With a current gift annuity, you may transfer cash or property in exchange for our promise to pay you fixed payments beginning as early as this year. You will receive an income tax charitable deduction this year for the value of your gift to Friends of the Columbia Gorge.
Deferred charitable gift annuity (for payments at future date). Perhaps you are not ready to begin receiving payments until a future date, such as when you retire. With a deferred gift annuity, you establish the gift annuity today, receive a charitable income tax deduction this year, but defer the payments until a designated date sometime in the future. Best of all, because you deferred the payments, your annual payment will be higher when the payments start than they would have been with a current gift annuity.
Flexible deferred charitable gift annuity (gives you flexibility as to when the payments will start). With a flexible deferred gift annuity, you retain the flexibility to decide when the annuity will begin making payments. As with a deferred gift annuity, you establish the annuity today and receive a charitable deduction this year, but the payments are deferred until such time as you elect to begin receiving the payments.
Please seek the specific advice of your tax advisor, attorney, and/or financial planner to discuss the application of these topics to your individual situation.