How does a Charitable Gift Annuity work?
In exchange for a gift of cash or securities, the Council pays you a specified annuity for life. The annuity amount is fixed at the time of the gift and provides a stable, dependable rate of return.
How is the annuity payment determined?
The annuity payment is determined by your age and the size of your gift. The older you are at the annuity’s start date, the higher the rate. (See back of page for rates for an individual. Rates for couples are also available.)
Are there tax advantages for Charitable Gift Annuities?
Depending upon your age, the charitable deduction can be about 25 to 50 percent of the gift. In addition, part of the payment received each year will be free from income tax.
Can I use appreciated stock to fund a Charitable Gift Annuity?
Yes. Securities that have gone up in value are a good choice because you won’t have to pay immediate capital gains tax on the entire appreciation. Because the transfer of securities is considered part gift and part purchase of an annuity, some of your capital gain escapes taxation. And, taxes due are spread out over your life expectancy.
How do I know this type of gift would be in my best interests?
The Council on Aging can provide a free gift illustration especially for you. This gift illustration will show the amount of guaranteed payments for life and your immediate charitable deduction.
Should I be concerned about the Council meeting its obligation for annuity payments?
No. Guaranteed annuity payments are a general obligation of the Council on Aging and are backed by all agency assets. In addition, the Council maintains a segregated Gift Annuity Reserve Fund valued at more than the minimum reserves required by the State of Florida.
Do I need to talk this over with my tax advisor and family first?
Yes, always! Personal and family security should always be the first consideration before making any irrevocable gift to charity. If you like, the Council can provide professional actuarial data for review.
For more information, contact Bonnie Ares Royster, CFRE, at the Council on Aging of Martin County. Phone; (772) 223-7831. E-mail address: broyster@coamc.org. Business address: 1071 E. 10th Street; Stuart, FL 34996.
A COPY OF THE OFFICIAL REGISTRATION AND FINANCIAL INFORMATION MAY BE OBTAINED FROM THE DIVISION OF CONSUMER SERVICES BY CALLING TOLL FREE (800-435-7352) WITHIN THE STATE. REGISTRATION DOES NOT IMPLY ENDORSEMENT, APPROVAL OR RECOMMENDATION BY THE STATE. THE COUNCIL ON AGING OF MARTIN COUNTY’S SOLICITATION REGISTRATION NUMBER IS CH2307.
CHARITABLE GIFT ANNUITY RATES* FOR ONE LIFE
Followed by the Council on Aging of Martin County, Inc. and
Approved by the American Council on Gift Annuities on April 5, 2006
Effective July 1, 2006 through June 30, 2007
SINGLE LIFE
Age |
Rate |
|
59 |
5.7 |
|
60 |
5.7 |
|
61 |
5.8 |
|
62 |
5.9 |
|
63 |
5.9 |
|
64 |
6.0 |
|
65 |
6.0 |
|
66 |
6.1 |
|
67 |
6.2 |
|
68 |
6.3 |
|
69 |
6.4 |
|
70 |
6.5 |
|
71 |
6.6 |
|
72 |
6.7 |
|
73 |
6.8 |
|
74 |
6.9 |
|
75 |
7.1 |
|
76 |
7.2 |
|
77 |
7.4 |
|
78 |
7.6 |
|
79 |
7.8 |
|
80 |
8.0 |
|
81 |
8.3 |
|
82 |
8.5 |
|
83 |
8.8 |
|
84 |
9.2 |
|
85 |
9.5 |
|
86 |
9.9 |
|
87 |
10.2 |
|
88 |
10.6 |
|
89 |
11.0 |
|
90 and over |
11.3 |
|
|
|
*The rates are for ages at the nearest birthday.