Gift Annuities

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Leave a legacy to the Francisans

A gift that pays you: Charitable Gift Annuities

The oldest and best known of charitable gifts that pay donors income for life is the charitable gift annuity described here. The payments are fixed and so completely predictable. The charitable gift annuity allows you to make a gift to a good cause while giving you a current income tax deduction and payments for life. In this way, some donors discover they can make a far more generous future gift to The Francisans than they thought possible. This is not to say that charitable gift annuities are superior to charitable remainder trusts. Everything depends on what the donor wishes to accomplish.

A gift annuity is simple to create. You fund your annuity with a gift of cash or stock. You are then paid a guaranteed fixed amount monthly, quarterly, semi-annually or annually for life. You must be at least 65 when the payments begin and your annuity must be created with gifts having a total value of at least $10,000.

Your gift annuity can provide payments for one or two lives. Both plans generate an immediate charitable tax deduction and partially bypass capital gains tax. In addition, part of your payment will be tax-free and all of your gift will pass to the Franciscans free of estate tax.

The Franciscans Gift Annuity Program

The Franciscans gift annuity program appeals to those who prefer predictable payments to variable income. A gift annuity provides fixed guaranteed payments to donors along with the satisfaction of making a significant future gift to the Franciscans. Annuity rates vary with age. The older you are, the higher your rate. Once established, payments remain the same for life. The following are some current single-life annuity rates.


Age

Rate

65

5.3%

70

5.7%

75

6.3%

80

7.1%

85

8.1%

90+

9.5%

Here’s an example: Mary Edwards, age 75, establishes a one-life gift annuity contract with $10,000. In exchange for her gift, the Franciscans pay her $630 annually for life. $440 of her $6630 payment is tax-free for thirteen years. She also receives a $4,400 charitable income tax deduction.

For an estimate of your rate and deduction, confidentially provided, call the Franciscans planned giving specialist Phil Murphy at 415-457-7482 or send an email to: plannedgiving@sbofm.org