Give & Receive: Create Retirement Income With Charitable Gift Annuities
Financial Consultant Ron Mohr refers to charitable gift annuities as the ‘give and receive’ tool for his clients. “They give to churches, charities and colleges they care about,” he says, “and they receive quarterly income from the gift annuity.”
It’s a common conversation Ron initiates with clients, but one that is years in the making. When clients are at or nearing retirement, Ron knows their history. He has talked about their interests and volunteer activities over time – and has studied their tax returns every year.
The charitable gift annuity is one solution for retirees looking for ways to minimize the tax consequences of required minimum distributions. “I show them the difference that charitable donations can make using the What-if calculator,” Ron says, adding that he has actually received thank-you notes from one client’s tax accountant.
“Of course, charitable clients don’t donate just for the tax deduction, but it is a side benefit,” he explains. Using a tool InFaith Community Foundation provides, the gift calculator, Ron demonstrates potential tax advantages and impact of their gifts.
How Charitable Gift Annuities Work
With charitable gift annuities, the donor gives cash or securities ($10,000 minimum) to InFaith and, in turn, receives a lifelong stream of income payments. Immediate gift annuities and several deferral options are available. Ongoing quarterly payments remain constant and at death, remaining assets are directed to the InFaith donor advised fund created by the donor. The donor advised fund distributes automatic annual support to charities selected by the donor.
Building Credibility With Clients
Financial Associate Joe Lang says working with InFaith helps boost his credibility with clients. Recently a retired couple had only 30 days to liquidate shares of highly-appreciated employer stock before a company buyout. He told them, “I’m not the expert, but I know who the experts are. Would you like to meet them?”
Joe and his clients met with InFaith gift planners and established a charitable gift annuity. “I knew they were charitable and wanted to bless others,” Joe says. “They liked the idea of naming the charities to receive future support. It was also imperative that they wouldn’t realize all those capital gains on the sale of the stock.”
Ron has found his collaboration with InFaith serves as a door opener with churches and nonprofit organizations in his community. “There are so many financial companies to choose from, but we are different in that we have InFaith just a phone call away and instant access to them online. That is a compelling story.”
Get Started Today. To learn more about charitable gift annuities or request a custom detailed gift illustration for specific clients, call InFaith gift planners at 800-365-4172.