Charitable Gift Annuities
You can make a gift of cash or property to The Community Foundation now, get immediate tax benefits, and ensure that you or a loved one receive fixed quarterly or annual income payments for life. Learn more about charitable gift annuities.
Giving through a Charitable Gift Annuity allows you to arrange a generous gift to your community, while providing yourself a new income source you can count on for the rest of your life.
How it Works
- You make a gift to The Community Foundation - you can give cash, appreciated stocks or other assets.
- We set up a contract with you that combines annuity payments with a deferred charitable gift.
- You receive a stream of income that is fixed, regardless of market conditions.
- You also receive an immediate tax deduction for the charitable portion of your gift.
- Upon your death, we set up a fund in your name, in the name of your family or business, or in honor of any person or organization you choose.
- We handle all the administrative details - issuing annuity payments to you during your lifetime and, afterward, issuing grants to charities in the name of the fund.
- Your gift is placed into an endowment that is invested over time. Earnings from your fund are used to make grants addressing community needs. Your gift - and all future earnings from your gift - is a permanent source of community capital, helping to do good work forever.
- You may choose to become a member of the Nettie J. Dayton Circle, The Foundation's planned gift recognition program.
Income from your charitable gift annuity may add up to more than the interest and dividends you earned from holding the assets. You can use this income to supplement your own lifestyle, or that of someone else: a sibling, a dependent parent, or a friend. You or a loved one can start receiving annuity payments immediately, or defer them to increase your charitable income tax deduction. A portion of the income may be a tax-free return of principal, while some is taxed as ordinary income or capital gains. The amount of annuity paid and the tax deduction received depends on the age of the recipient and the current annuity rate (as established by the American Council of Gift Annuities). The minimum contribution for the initial charitable gift annuity by a donor is $20,000. Additional gift annuities may be established for a lesser amount.
A charitable gift annuity reduces estate assets and may reduce estate taxes. Plus, it's easier to set up than a charitable trust and is backed by the general assets of The Community Foundation.
To learn more, contact Sharon Cappetta, call 203-777-7071 or use the calculator below to find out your personal gift annuity rate.