Charitable Gift Annuity
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.
- You make an irrevocable gift to the Benedictines ($10,000 minimum for your first annuity, $5,000 minimum for any subsequent annuities);
- You receive fixed payments for life (partially income tax-free) at a rate that is based on your age; and
- 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:
- They can be used to supplement qualified retirement plan savings.
- You qualify for a current income tax deduction now during your high-income years.
- 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 increased on January 1, 2023.
Sample one-life gift annuity rates, effective January 1, 2023
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.