CHARITABLE GIFT ANNUTIES

CHARITABLE GIFT ANNUITIES

Charitable gift annuities (CGAs), like charitable remainder trusts (CRTs), are life income gifts: you transfer assets now, receiving a charitable deduction for a portion of the transfer, and you or a beneficiary receives income for the rest of your life or a fixed period of time. Both Lemon Bay Conservancy and you can benefit from life income gifts such as these.

HOW IT WORKS

With a CGA, you make a gift to the Conservancy, and the Conservancy agrees to pay you a fixed amount of income every year for the rest of your life. Another beneficiary can also receive income from your CGA. In addition, you have the option to defer receiving income for a period of time.

The income received each year is equal to a fixed percentage of the original gift. This percentage is dependent upon the age of the beneficiary (or beneficiaries) at the time the CGA begins to pay out income.

Upon the passing of the last surviving beneficiary, Lemon Bay Conservancy will use any remaining annuity assets to support the program you designated when you established the CGA.

SEVERAL TAX BENEFITS

Regardless of your age or the timing of the income, you can take the charitable deduction for a portion of the gift in the year you make the gift. A portion of the payments you receive each year may also be exempt from certain income taxes. You may even be able to reduce your capital gains tax by using long-term appreciated securities to make your gift.

A CGA IN ACTION

If you are age 68 and transfer $20,000 to the Conservancy for a CGA, you would receive guaranteed payments of $1,400 each year, based upon the 7% annuity rate for your age. The $1,400 may be paid in one sum each year, or in several installments throughout the year.

Over $700 of the income would be tax-free each year, for the next 17.5 years. (After that time, the full $1,400 would be taxable.) In addition, you would be entitled to an immediate charitable deduction of approximately $7,100.

These figures are for illustration purposes only. Current annuity rates may differ.

If you would like further information about making a gift of stock, contact us at 941-830-8922 or lbconservancy@comcast.net

This information reflects, in very general terms, how a gift might affect specified tax liabilities. This is not an effort to reflect your current tax picture or suggest that a particular gift will have the indicated result in your case; only your lawyer and accountant can do that. We suggest you consult your professionals before acting upon the concepts reflected here.

	CHARITABLE GIFT ANNUITIES Charitable gift annuities (CGAs), like charitable remainder trusts (CRTs), are life income gifts: you transfer assets now, receiving a charitable deduction for a portion of the transfer, and you or a beneficiary receives income for the rest of your life or a fixed period of time. Both Lemon Bay Conservancy and you can benefit from life income gifts such as these. HOW IT WORKS With a CGA, you make a gift to the Conservancy, and the Conservancy agrees to pay you a fixed amount of income every year for the rest of your life. Another beneficiary can also receive income from your CGA. In addition, you have the option to defer receiving income for a period of time. The income received each year is equal to a fixed percentage of the original gift. This percentage is dependent upon the age of the beneficiary (or beneficiaries) at the time the CGA begins to pay out income. Upon the passing of the last surviving beneficiary, Lemon Bay Conservancy will use any remaining annuity assets to support the program you designated when you established the CGA. SEVERAL TAX BENEFITS Regardless of your age or the timing of the income, you can take the charitable deduction for a portion of the gift in the year you make the gift. A portion of the payments you receive each year may also be exempt from certain income taxes. You may even be able to reduce your capital gains tax by using long-term appreciated securities to make your gift. A CGA IN ACTION If you are age 68 and transfer $20,000 to the Conservancy for a CGA, you would receive guaranteed payments of $1,400 each year, based upon the 7% annuity rate for your age. The $1,400 may be paid in one sum each year, or in several installments throughout the year. Over $700 of the income would be tax-free each year, for the next 17.5 years. (After that time, the full $1,400 would be taxable.) In addition, you would be entitled to an immediate charitable deduction of approximately $7,100. These figures are for illustration purposes only. Current annuity rates may differ. If you would like further information about making a gift of stock, contact us at 941-830-8922 or lbconservancy@comcast.net This information reflects, in very general terms, how a gift might affect specified tax liabilities. This is not an effort to reflect your current tax picture or suggest that a particular gift will have the indicated result in your case; only your lawyer and accountant can do that. We suggest you consult your professionals before acting upon the concepts reflected here. Return to Support Page