Charitable Gift Annuity

You can be generous without straining your finances. A Charitable Gift Annuity is the donation that provides you income for life. If you possess a house or another appreciated asset that you are reluctant to sell because of the capital gains tax, let it generate an annual stipend as a Charitable Gift Annuity.

A Charitable Gift Annuity provides immediate or deferred income for the life of one or two individuals, and a portion of the income may be tax-free. A Charitable Gift Annuity also creates an immediate charitable deduction for the donor, and permits the remaining assets to be designated to your favorite charities or causes. Best of all, a Charitable Gift Annuity with ElderHelp of San Diego is backed by the full faith and credit of our partner, The San Diego Foundation.

American Council on Gift Annuities suggested Gift Annuity Rates

Effective 7/1/08

A charitable giving advisor at our organization will assist you in answering all your questions. Email Leane Marchese or call 619-284-9281 x11 to learn more.

Charitable Gift Annuities at the San Diego Foundation

A charitable gift annuity is a popular life income plan that enables a person to give and receive -- that is to make a gift to an endowment fund and to secure an income stream for life. The concept of an annuity is simple:

• An annuity is a contract between the donor and The San Diego Foundation and backed by the full faith and credit of The San Diego Foundation.
• In return for an outright transfer of cash or other property, The San Diego Foundation agrees to pay a fixed sum of money for a period of time measured by one or two lives.
• The donor is the person who transfers the cash or other property and the annuitant is the person who receives the payment.
• The annuity amount is fixed at the outset based on the age of the annuitant.
• Payout rates are based on the age of the annuitant and rates established by the issuing charity, The San Diego Foundation which generally follow recommended rates of the American Council on Gift Annuities (ACGA). For example, ACGA rates used by The San Diego Foundation range from 5.5% for a person age 60, to 10.5% for a person age 90 and older.
• Maximum number of annuitants is two and the payment will be slightly reduced reflective of the annuitants’ ages.
• If the annuity is funded with a cash gift, part of the annuity payment is free from federal income tax and part is taxed at ordinary income rates.
• If the annuity is funded with appreciated property, such as securities, the capital gains tax may be spread out over the annuitant’s life expectancy.
• The donor may take an income tax charitable deduction generally equal to the fair market value of the property transferred minus the present value of the annuity.

A charitable gift annuity can be advantageous in the current market conditions and other circumstances such as the following:

• Annuity rates may provide a greater rate of return than current interest rates on CDs and other fixed investments and thereby increase cash flow.
• Tax on capital gains from the sale of appreciated securities is spread out rather than being due in the year of sale.
• Annuity payments provide the security of guaranteed payment for life that is not affected by interest rates, stock prices, and other economic factors.
• Surviving spouse continues to receive the same payment without a decrease in amount or the delay of probate proceeding.
• Annuity agreements do not require appointment of a trustee, management and administration fees for accounting and tax return filings, and legal fees for preparing documents.

For additional, personalized information on charitable gift annuities or other gift options, please contact Leane Marchese at ElderHelp of San Diego at 619-284-9281 x11 or Amy Walling at The San Diego Foundation at 619-235-2300.