Charitable Gift Annuities
A charitable gift annuity1 established with UCS can help you provide fixed payments for yourself and/or others while making an important gift to UCS. In doing so, you would irrevocably donate cash or securities (with a minimum value of $20,000) to UCS in exchange for fixed payments paid by UCS. You and/or another named beneficiary would receive a fixed dollar payment each year, usually paid quarterly, for the rest of your lives.The annuity rate would depend on the age of the income benefiary(ies) when the gift is made, and is based on uniform gift annuity rates recommended by the American Council on Gift Annuities (click here for rates for single beneficiaries). You may elect to defer payments from a charitable gift annuity for one or more years. The longer payments are deferred, the greater the annuity payment UCS can agree to pay. A deferred-payment charitable gift annuity offers donors an attractive option to supplement their retirement income.
Example: John Doe owns some stock he bought a number of years ago that has appreciated in value, but is currently providing a low return. John has also been a longtime supporter of UCS and would like to make a gift while maintaining his financial stability. In addition, he is concerned about the capital gains tax he would have to pay if he were to sell the stock and reinvest it. John, who turned 70 in February 2006, decides to set up a $20,000 charitable gift annuity with some of the appreciated stock he owns. He is eligible for an annuity rate of 6.5 percent, and his charitable deduction is approximately $8,236.80. He receives quarterly payments of $325, or $1,300 annually. John is only responsible for reporting a portion of the capital gains on the asset, and this amount can be spread over his life expectancy since he is the primary beneficiary.
A minimum contribution of $20,000 is required to establish a charitable gift annuity, and a minimum age of 60 is required for all beneficiaries.
For more information
For more information, please contact Adam Kessler by phone at 800-666-8276 or by email at akessler@ucsusa.org.
1. Immediate and deferred charitable gift annuities may not be available in all states.
