By Jackie Jacobs
A Charitable Gift Annuity is “the gift that gives back.” You give to a charity and you receive regular payments for the rest of your life. It is a planned gift that truly lasts a lifetime.
For example, let’s say you make a straight-out gift of $50,000 to your favorite charity for a gift annuity. This contribution is split into two parts: “part gift” and “part contract.” You receive a charitable income tax deduction for the “part gift” portion and a lifetime income from the “part contract” portion.
Another example: Consider 80-year-old Mrs. Levine. She obtains a charitable gift annuity with appreciated stock valued at $50,000. Instead of selling the stock and giving the money, she gives the stock directly to the charity, so she will not have to pay the capital gains tax all at once.
The gift portion of the $50,000 amounts to $23,700, according to recent tables. She receives a charitable income tax deduction of that amount which she can apply to her next itemized tax return.
The balance is used to establish an annuity that will pay her 6.8% in semi-annual payments for the rest of her life. A portion of each payment, at least initially, will be tax-free.
Someday, Mrs. Levine’s charity will use whatever is left in the annuity account for its charitable purposes.
Would you like to see a personalized illustration showing how a gift annuity could work for you? It may be just what you are looking for to combine your charitable giving with your income needs.
Call or write me for further material about the Columbus Jewish Foundation’s gift annuity program, and to receive your confidential and complimentary illustration. Or, if you desire, I will meet with you to explain the illustration in person. Please know that there is never any cost, pressure, or obligation when discussing charitable giving with the Columbus Jewish Foundation.
Article appears as originally published in the Ohio Jewish Chronicle, Thursday September 21, 2016.
Jackie Jacobs is the Chief Executive Officer of the Columbus Jewish Foundation, the Central Ohio Jewish community’s planned giving and endowment headquarters.