October 12, 2015
A gift annuity can be created by transferring your cash or appreciated property to our organization. We create a contract with you and promise to pay you fixed income starting now or in the future. Your payments never change and a portion of your income could be tax free.
How does a gift annuity work? Let’s say you are 78 years old. Your gift annuity rate is 6.4%. If you fund a charitable gift annuity with $10,000, you will receive $640 every year for the rest of your life. When that same charitable gift annuity is funded with $100,000, your lifetime income could be $6,400 annually.
If you transfer $1,000,000 your income could rise to $64,000 annually. In addition to cash, a gift annuity can be funded with securities. One idea is to exchange your underperforming CDs, stocks or municipal bonds for the generous fixed payment of a charitable gift annuity this year.
The benefits of creating a charitable gift annuity this year don’t stop with the income. You will enjoy a charitable tax deduction and a 40% ND State tax credit on the tax deductible portion of your gift. (Century Code 57-38-01.21) The larger your gift annuity income the more you can receive tax free. Call or email us to inquire about your gift annuity rate (based on your age) and your income and tax savings. With a gift annuity, you can enjoy a lifetime of dependable payments while helping the church. Your beneficiary may be your parish, Catholic school, the diocese or other ministries within the diocese.
Chart of charitable gift annuity rates for one life