Charitable Gift Annuity - Immediate

In this popular charitable giving arrangement, you make a gift to Central Virginia Food Bank of cash or stock worth a minimum of $10,000.  The Food Bank then provides a guaranteed, fixed quarterly payment for the life of one or two individuals, for example, you and your spouse.  The annuity payment is at a rate of 6.5% to 11.3% of the gift amount, depending on the annuitants’ ages at the time the gift was made.  To establish these rates, Central Virginia Food Bank follows guidelines set by the American Council on Gift Annuities.  Once the annuitant(s) has died, the remaining assets will be used by the Food Bank to combat hunger.

The following chart sets forth the current gift annuity rates:

ONE-LIFE*	TWO-LIFE*
Donor's Age Rate Of Return 60 5.0 65 5.3 70 5.7 75 6.3 80 7.1	Donor's Age Rate Of Return 60-60 5.2 65-65 5.4 70-70 5.6 75-75 6.0 80-80 6.6

*The table shows the rates for a gift made February 1 through June 30, 2009.  These rates are subject to change.

In addition, a gift annuity qualifies for immediate income tax benefits. A portion of the gift is tax deductible as a charitable contribution, and a portion of the income received each year may be tax-free. Furthermore, if a gift annuity is funded with long-term appreciated securities, any reportable capital gain is spread over the annuitant’s life expectancy rather than all in the same year.

 

Charitable Gift Annuity - Deferred

A deferred charitable gift annuity works the same way as an immediate charitable gift annuity except that the payments start a year or more after the date of the gift.  This type of annuity is often created by someone who has not yet retired, but may need a current income tax deduction and wants to supplement retirement income in the future. Since the annuitant(s) have deferred the receipt of the payments, the annuity rates are higher than those for a gift annuity that begins immediately.  In addition, when funded with long-term appreciated assets, any reportable capital gain is spread over the annuitant’s life expectancy rather than all in the same year.

Return to Planned Giving Page

For additional information about planned gifts, please contact Tami Messenger at the Central Virginia Food Bank office.  All conversations will, of course, be confidential.

Telephone 804-521-3275 •  Email:  tmessenger@cvfb.org

The Planned Giving discussion on this website is not intended to be legal or financial advice.  Please consult your attorney or financial advisor to determine whether any of these planning ideas are applicable to your own situation.