- Gift annuities are a great financial provision for older persons.
- They guarantee regular payments for your lifetime, partially tax free.
- You receive a major tax deduction the year you make your gift.
- You enjoy financial security, with no worries about details.
- And when you go to be with the Lord, the remaining balance of your gift will be used for His work—without probate delay or legal expenses.
GIFT ANNUITIES Provide Income for Life, Tax Advantages, and Eventually Support God’s Work.
Many older people want to give a portion of their estate to the Lord’s work, but they prefer giving it while they’re still living. But since they don’t know what the future holds, they need to have income to live on until they go to be with the Lord.
The Gift Annuity answers their need.
When Christian Aid receives your annuity gift, the full amount is invested as part of the Annuity Trust Fund to earn income and provide payments to you. When you depart this life and go to be with the Lord, the remaining balance is used for missionary work in poorer countries overseas.
How Gift Annuities work.
You send a gift (cash, mutual funds, or listed securities) of $4,000 or more to Christian Aid, together with a Gift Annuity application form. Christian Aid will send you an Annuity Agreement and a certificate. Payments will be made to you by Christian Aid for the rest of your life, at a rate based on your age at the time you gave the money. They are sent annually, quarterly, or even monthly, but no payments can be made of amounts less than $100, except annually.
How much can I deduct from income taxes?
A tax deduction for the current year (up to 40% of your total gift) and a percentage of your annual payments are free of income taxes. These amounts are derived from figures provided by the Internal Revenue Service for non-profit organizations that qualify to receive charitable annuity gifts.
Are there different kinds of charitable annuities?
- Single life: One person only is named in the agreement.
- Joint (Survivorship): Two annuitants receive payments jointly. When one passes on, the survivor continues to receive full payment for life.
- Deferred: Payments begin at a later date.
Are there limits on the amount I can contribute as a gift annuity?
The minimum is $4,000. Each annuity gift must be at least that much. But there is no maximum limit as to the amount.
Several couples have given over $200,000 to Christian Aid as gift annuities.
What rate of return does Christian Aid give for payments on an annuity?
The rates vary from year to year. Current payments for a gift annuity placed by a Single Individual are higher than those for a Joint Survivor gift annuity for two persons. Rates are locked in at the time of the agreement.
The older you are, the higher the tax deduction will be and the higher the payments you will receive.
Write or call 1-800-977-5650, or email info@christianaid.org to receive a copy of the complete rate tables and to request an application form.
As soon as your application and contribution are received by Christian Aid, the Gift Annuity Agreement and a certificate will be sent to you. Payments are guaranteed to you for the rest of your life. In 50 years of ministry Christian Aid has made every annuity payment in full and on time.
