You've worked hard over the years and hopefully made some smart investment. If you
are discouraged by low earning and cash investments, a charitable gift annuity -which
its fixed annual payments and numerous tax advantages- may interest you. With a gift
annuity, you still feel the satisfaction of making a substantial gift to support our
important mission. In addition, you receive tax benefits and regular, fixed payments for
the rest of your life and the life of another person if you choose.
WITH A GIFT ANNUITY-YOU AND US
The Fundamentals of Gift Annuities
A gift annuity is a simple contract between you and a charitable organization in which the organization pays you an amount
based on the value of the gift. The transaction can usually be completed within a few days.
The annuity can be set up to continue for a survivor after your lifetime. This is known as a "two-life" CGA. The American
Council on Gift Annuities meets periodically to determine and recommend the maximum amount annuities should pay out to
you. The rate also takes your age into account; the older you are, the higher the rate. In general, annuities rates will be
slightly higher for a one-life gift, slightly lower for a two-life gift. Rates also increase with deferred annuities plans, when you
give now but agree to start receiving your payments later.
Find out more
Charity begins at home. Make sure your hard-earned nest egg will provide you with a comfortable income; protect your wealth
from unnecessary taxes and inflation; and shield your estate against unexpected ravages such as the cost of a catastrophic
Consult your professional advisors to determine whether a charitable gift annuity fits your circumstances. You can make a gift
to help us that gives back to you.
How a CGA Pays You
Paul and Marsha Adams establish a CGA with $50,000. Based on their ages (60 and 65), Capuchin Franciscan Friars will pay
them 5.5 percent or $2,750 per year for the rest of their lives. The Adamses receive and immediate charitable deduction of
$14,880.* Plus, part of each payment is tax-free, increasing the effective yield when compared to a fully taxable investment
such as a certificate of deposit.
Summary of Benefits
- Paul and Marsha receive a charitable deduction of $14,880, which in their 28 percent income tax bracket generates a tax
savings of $4,166.
- Of the annual amount, $1,276 is considered a tax-free return of principal for 27.5 years, based on their life expectancy.
Then, the entire annuity payment is taxed as ordinary income.
- The actual out-of-pocket cost of the gift is $45,834 ($50,000 - $4,166), which brings their effective rate of return up to
- Paul and Marsha make a generous gift and leave a legacy for others to follow.
* Based on a 5.8 percent charitable midterm federal rate and quarterly payments.
Request our FREE brochure: The Charitable Gift Annuity: A Simple Gift that Benefits You, Too!
|Capuchin Franciscan Friars
Office of Planned Giving
|he information on this site is not intended as legal, tax or investment advice.
For such advice, please consult an attorney, tax or investment professional.