Charitable Gift Annuity Examples
- Brünnhilde, who is 80 years old, contributes $20,000 in securities (with an original cost of $8,000) to Seattle Opera for a gift annuity. With an annuity rate of 8.9%, she receives fixed, guaranteed payments of $1,780 per year as long as she lives. For the duration of her life expectancy, $459 of her annual payments will be tax-free, and $689 of them will be taxed as capital gain. She also receives a charitable deduction of $9,203 in the year of her gift.
- Wotan, age 76, gives $10,000 cash to Seattle Opera for a gift annuity and he will receive $800 a year. $483 is tax-free for the first eleven years, after which, the remaining amount will be taxed as ordinary income. Also, his income-tax deduction for the year of his gift would be $4,294.
We would be more than happy to prepare a free illustration on how a charitable gift annuity can benefit you. From information you provide, this illustration will show you the guaranteed annual payments, the charitable tax deduction for you, and other information to help you in your decision.