Charitable Gift Annuities
You can make a generous gift and receive a stream of payments to you and/or a loved one—all while generating valuable tax benefits. A charitable gift annuity is a gift that pays you back and provides for our collective future. For those who need the security of lifetime income and also want to provide a better future for those to come, a charitable gift annuity (CGA) can be a great opportunity.
What Is a Gift Annuity?
A charitable gift annuity is a way to support JFCS’ mission and receive regular, fixed payments for life. It is a simple contract between you and JFCS where JFCS promises to pay a fixed amount to you and/or a loved one in exchange for a gift of cash or securities. The amount of your payments is based on the age of you and/or your beneficiaries’ ages and the value of your donated asset. Payments can be made to you in annual, semi-annual, or quarterly installments. After your lifetime(s), the remaining balance passes to JFCS.
A CGA has several benefits: a generous charitable contribution, a guaranteed lifetime income source, and tax benefits. A JFCS CGA may be established with a simple contract by someone 65 or older with a minimum gift of $10,000. The older you are, the higher your return. There are no start-up costs, and you do not need a lawyer, although we encourage you to seek professional advice.
What Kinds of Benefits Can I Expect?
Fixed income for life: You receive regular payments for the rest of your life.
A very favorable payout rate: Annuity payout rates are very attractive, especially when compared with conventional savings plans, such as money market accounts and CDs.
Tax savings: A gift annuity provides significant tax savings right from the start. You receive an immediate income tax deduction for a portion of your contribution, and a significant portion of each income payment may be tax-free. In addition, if you fund your annuity with stocks that have increased in value, your capital gain tax liability will be reduced.
Flexibility: You decide how you will receive your annuity payments and when they will begin.
Security: Your gift investment is fully backed by JFCS and is not affected by market fluctuations.
Personal satisfaction: After your and/or your beneficiaries’ lifetimes, the balance goes to JFCS to carry on our mission of providing comprehensive services to people in our community who are in need.
What Kinds of Gift Annuities Are Available?
JFCS will work with you to determine what kind of CGA meets your personal needs and objectives:
Immediate: Payments begin within one year.
Deferred: Allows you to make a gift today and select a date in the future when you would like payments to begin. The longer you delay your payment start date, the higher your rate of payout.
Flexible: You do not have to choose a definite payment starting date at the time you set up your gift annuity. Instead, you select the window during which you can choose, at a later date, to begin receiving payments.
To learn more:
JFCS gift-planning professionals are happy to work with you to determine if a CGA is right for you. We provide a personalized illustration of your payout rates and tax advantages, with no obligation on your part.