Charitable Gift Annuity

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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 really quite simple. It’s as easy as 1-2-3.

  1. You make an irrevocable gift to the Benedictines of $5,000 or more;
  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 because of restrictive rules and regulations 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.

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.

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