what is a charitable gift annuity?
A Charitable Gift Annuity is the Foundation’s commitment to pay you a fixed amount each year for the rest of your life in exchange for a sum transferred to the Foundation. The funds are placed in an investment account exclusively for gift annuities. The contract ends at the death of the last beneficiary, and the remaining balance is released for use by the Foundation.
why a charitable gift annuity?
Increase cash flow from CDs or appreciated stock. Because each annuity payment consists of earnings plus a portion of principal, the payments can be noticeably greater. And, because a portion of each payment includes a return of principal, that portion of the payment is non-taxable.
Take a current tax deduction. Because the charity receives the residual balance at the end of the contract, there is a charitable tax deduction at the time the annuity is established.
Reduce estate taxes. Your investment in the annuity is not includable in your estate, so estate taxes (if any) will be reduced as a result of purchasing this annuity. Consult your tax adviser about your specific situation.
why the Boys and Girls Clubs of Greater Scottsdale?
Secure Investment. All annuities are secured by a professionally managed reserve account consisting of high-grade investments. This account is continually reviewed to ensure that it always exceeds applicable laws and regulations. In addition, your contract is also backed by all the assets and resources of the Boys and Girls Clubs of Greater Scottsdale Foundation.
No Better Investment. There is no better investment that you can make than in the life of a child. The Boys and Girls Clubs of Greater Scottsdale is one of the fastest growing and highly recognized youth development organizations in the nation.
how it works
- You transfer cash or securities to the Foundation.
- The Foundation pays you, or one other beneficiary you name, fixed income for life.
- The remaining balance passes to the Foundation when the contract ends at the death of the last beneficiary.
This educational illustration is not professional tax or legal advice; consult a tax advisor about your specific situation.
benefits
- Receive dependable, fixed income for life in return for your gift.
- In many cases, increase the yield you are currently receiving from stocks or CDs.
- Receive an immediate income tax deduction for a portion of your gift.
- A portion of your annuity payment will be non-taxable.