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 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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