Planned Giving: Charitable Gift Annuities

A gift annuity is an agreement where a donor transfers assets in the form of cash or appreciated securities to the charity in exchange for a fixed, lifetime annual income.  Some of this income is tax-free for a period of years and can be paid monthly, quarterly or annually, depending upon the needs of the donor.  A gift annuity can also be set up to provide for a spouse or beneficiary.  There are income tax and capital gains benefits, a charitable deduction (can be spread out over 5 years, 3 years for non-cash assets), and a possible reduction in probate costs and estate taxes.

The rate of return is based on the donor's age at the time of the gift, and the fact that if the income will be spread over more than one life, the rate will be lower.  The sample gift rates below are for a one-life gift annuity.

Age Rate   Age Rate
65 7.0   80 9.2
70 7.5   85 10.5
75 8.2   90 12.0

The minimum gift in this situation is $2,000, and you can choose either the American Baptist Churches or the United Church Foundation to manage your gift, with some or all of the remainder benefiting Andover Newton.

If you establish a planned gift to benefit Andover Newton, you will be invited to become a member of our Heritage Society. An Honor Roll of Heritage Society Members is published in our Annual Report. You can choose whether or not you want your name to appear on the Honor Roll. There is also an annual reception for Heritage Society Members in the fall.

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