Give & Receive - Charitable Gift Annuities | InFaith Community Foundation

Give & Receive

Charitable Gift Annuities

A charitable gift annuity allows donors to make a charitable gift and receive payments for life.  They may be set up for one life or two, joint or successive. After the gift annuitant(s)' life, the remainder of the gift annuity will go to the donor's charitable fund, benefiting their recommended charities over time. The minimum gift is $10,000 and income payments can begin immediately or be deferred. 

 
How to Establish a Gift Annuity at InFaith:
  1. Request a personalized illustration for your client using our request form, or use our gift calculator.
  2. Review the illustration and disclosure documents with your client.
  3. If your client wishes to proceed and establish a gift annuity, complete and return the Gift Annuity Application, IRS Form W-9 and Fund Workbook
    • If the client is giving cash, they may send the check at this time, made payable to InFaith Community Foundation.
    • If the client wishes to give stock, include copies of either the stock certificates or the most recent brokerage statement showing the shares they wish to give. InFaith will contact you with specific instructions on how to transfer the securities.
Tax and Financial Benefits of Creating a Gift Annuity
  • The annuitant(s) receive fixed payments for life (backed by on the full faith and credit of InFaith);
  • The donor receives a charitable income tax deduction in the year of the gift;
  • For gifts of cash, the annual charitable deduction limit is 60% (for gifts January 1, 2018 and thereafter) of the donor’s AGI;
  • For gifts of long-term appreciated securities, the annual charitable deduction limit is 30% of the donor’s AGI;
  • Unused charitable deductions may be carried over an additional five years;
  • The donor bypasses a portion of capital gains on gifts of appreciated securities; a portion of the capital gain is recognized over the lifetime of the annuitant; and
  • A portion of each gift annuity payment is usually tax-free.
 
 
Target Audience

Immediate Gift Annuity

  • Older clients (70+);
  • Clients who are fiscally conservative;
  • Clients seeking additional income;
  • Clients who already have a gift annuity;
  • Clients who wish to give cash or appreciated stock; and
  • Clients with stock who are seeking ongoing income for long-term care or wealth replacement insurance premiums.

Deferred Gift Annuity

  • Younger clients (50+);
  • Clients who want a charitable tax-deduction now but have no need for additional income until retirement age;
  • People who want to establish a supplemental retirement plan;
  • Clients who wish to give cash or appreciated stock; and
  • Clients who have maxed out qualified retirement plan contributions, but still need additional retirement income.

 

Gift Annuity Payout Rate

 

InFaith uses the American Council on Gift Annuities recommended rates to determine the payout rate on a gift annuity contract. Rates are based on the age of the annuitants; gender is irrelevant. A donor may request a lower payout rate and in return receive a higher charitable income tax deduction.
 
Benefits to you, the FINANCIAL PROFESSIONAL

InFaith will support you with a full range of charitable products and services, and you'll be compensated for your efforts by Thrivent or American Funds. (details)

Resources to Support Your Work

 

contact a gift planner for assstance