Great News! Charitable Gift Annuity Rates Are Rising!
As a supporter of the ASPCA, you may have heard about a form of giving called a charitable gift annuity. But what is it? And what do rising rates mean for you? We are here with answers and good news about this special type of gift!
What is a charitable gift annuity?
A gift annuity is a contractual agreement in which, in exchange for a minimum gift of $10,000, the ASPCA will make payments to you, another person or two people (age 60-and-up) for life.
There are also numerous tax benefits that come with a gift annuity, including the following:
- An income tax charitable deduction the year in which you make the gift
- A portion of your annuity payments are tax-free for your life expectancy
- The partial elimination of capital gains tax when you use appreciated assets to fund an annuity
We are pleased to announce that charitable gift annuity rates will be increasing beginning on July 1, 2018! The new rates will be as follows:
|Annuitant Age||Single Life Annuity Rate|
But how does it work?
Here’s how gift annuities work: 80-year-old Mary is a long-time ASPCA donor and wants to make a gift to the ASPCA. However, she also wants to ensure that she will have enough income in her retirement. So, she makes a $20,000 one-time annuity gift, and in exchange, Mary receives $1,240 every year from the ASPCA. She also becomes eligible for a charitable deduction of $9,150 if she itemizes her tax deductions.*
Use our online calculator to see what your gift annuity could look like!
So why choose an annuity?
Annuities are popular with donors looking to increase their retirement income, or they are often created as an alternative to a charitable remainder trust. They are also a great way to support our lifesaving work across the country for a substantial amount of time. When an annuitant passes away, any remaining funds become a charitable gift to the ASPCA, leaving a legacy of compassion for our animal friends
For more information or a confidential, personalized proposal, contact the Planned Giving Team at (646) 706-4665 or [email protected].
*Disclaimer: Based on current rates. Deductions and calculations will vary depending on your personal circumstances. Please seek the specific advice of your tax advisor, attorney, and/or financial planner to discuss the application of these topics to your individual situation.