Gift annuities have always been attractive for donors. They offer a great win-win, with individuals receiving a guaranteed income for life and their churches benefiting at the end of the donor’s life.
Here at the Foundation we manage about 45 annuities totaling more than $580,000.
Effective July 1, we will increase the payout rate for new annuities. This comes at the recommendation of the American Council on Gift Annuities. Charities with ethical gift annuity programs follow the ACGA rates.
The benefits go beyond attractive payout rates. Most of the income is free from taxes: federal, state and local. Donors get a tax deduction for about 40-60% of the value of the annuity, and the security of knowing the rate is locked in, regardless of what happens with interest rates, the stock market or other investments.
But the key is that an annuity is a great way of supporting the church’s mission in a very simple, straightforward way that is relatively inexpensive to administer. And with the Foundation’s minimum annuity of just $10,000 this can be a great tool for so many of your members.
Below is a sample of gift annuity rates after July 1:
If you haven’t discussed gift annuities or planned giving with your members, this may be just the perfect excuse to do so.
Your members who may be interested gift annuities should start with these resources:
Click here to personalize a gift annuity illustration. Click on “Personalize this diagram.”