By Michael Morse, Executive Director, Catholic Community Foundation of Southwest Florida (Special to the Florida Catholic)
12/22/2016
A Charitable Gift Annuity (CGA) with the Catholic Community Foundation of Southwest Florida is a great way for donors to support the Catholic entity of their choice within the Diocese of Venice, while at the same time, generating a guaranteed life-long income for themselves or a loved one.
A CGA is a contract between a donor and the Foundation whereby the donor receives a partial tax deduction along with fixed payments for the rest of their life in exchange for a gift of cash or securities. The money remaining in the account at the end of their life is given to the Catholic entity they chose as their beneficiary, such as their Parish, Catholic School, seminarian education, Catholic Charities, or other outreach programs of the Diocese.
The Foundation utilizes annuity rates provided by the American Council on Gift Annuities (ACGA), which are based on age, life expectancy, and assumed investment returns. The ACGA recommended rates are intended to produce a final gift to the chosen Catholic entity of approximately 50% of the original funding amount.
For example, a $100,000 contribution from a 75-year-old donor would result in a 5.8% gift annuity that would generate an estimated income tax deduction of $32,612, annual payments of $4,350 to the donor ($3,419 of that amount would be tax-free for the first 12.4 years), and an ultimate gift of $50,000 to the Catholic entity of their choice.
The minimum amount required to establish a CGA with the Foundation is $25,000, which donors can fund with either cash or securities. Though, a donor can receive an added benefit if they fund their CGA with appreciated securities because they will be able to avoid recognizing capital gains on the sale of those securities at the time of their gift.
The Foundation offers both immediate payment and deferred payment CGAs. Immediate payment CGAs are available to donors aged 65+ with payments usually made on a quarterly basis. Deferred payment CGAs are available to donors aged 50 to 64, with quarterly payments beginning after they turn 65.
CGAs can be established in a number of ways. For instance, donors can create either one-life or two-life annuities, or they can even establish a gift annuity that makes payments to another person such as a child, parent or friend. Regardless of how they are set up, gift annuities can be appealing to a wide range of individuals who are interested in generating fixed payments.
If you would like to learn more about the benefits of establishing a Charitable Gift Annuity with the Catholic Community Foundation of Southwest Florida, please contact the Foundation at 941-441-1124 or CCF@dioceseofvenice.org.
Print this entry