A gift annuity is an agreement between you and us that allows you to support our work while ensuring you or a beneficiary of your choice, has income for life.

Understanding how a charitable gift annuity works is quite simple. It’s as easy as 1-2-3.

1. You make an irrevocable gift to the Benedictines ($10,000 minimum for your first annuity, $5,000 minimum for any subsequent annuities);
2. You receive fixed payments for life (partially income tax-free) at a rate that is based on your age; and
3. You also receive a charitable deduction for a portion of your gift.

Charitable gift annuities can be funded for payments to go to one or two beneficiaries, such as you and a spouse. There are also a number of very attractive benefits. You can:

• fund it with cash or marketable securities,
• qualify for an immediate income tax charitable deduction for the gift (subject to certain income limitations),
• potentially spread out any capital gains tax liability, and
• as the donor, you can select payment intervals that work for you.

Professionals and other highly compensated employees who frequently max out their annual retirement plan contributions may want to consider a deferred gift annuity strategy. Deferred gift annuities offer three important benefits:

1. They can be used to supplement qualified retirement plan savings.
2. You qualify for a current income tax deduction now during your high-income years.
3. You can postpone the start of annuity payments until later—usually after retirement begins.

Now is a great time to consider this giving option as gift annuity rates are the highest they've been in years.

Sample one-life gift annuity rates, effective January 1, 2024

Age	70	75	80	85	90
Rate	6.3%	7.0%	8.1%	9.1%	10.1%

 

For a simple one-page explanation of a charitable gift annuity, click here to view At a Glance: Charitable Gift Annuity. [PDF]

Contact us for more information about charitable gift annuities.