What are planned gifts? It is a variety of charitable giving methods that allow the donor to express his or her personal values by integrating charitable, family, and financial goals. Bequests through a will comprise about 80% of planned gifts. Life Income Gifts are also available and deserve some review.
Charitable Gift Annuities (CGAs) are the most popular of the Life Income Gifts. CGAs address these following important issues:
- You want to increase your cash inflow
- You want the security of guaranteed payments for life, regardless of the fluctuation in the market
- You want to save taxes
If these pertain to you, then CGAs is a most viable option for leaving a planned gift to Emmanuel. Here’s how it works…
You must be 55 years of age or older, and the minimum gift is $10,000. You donate this gift to Emmanuel and you will likely receive a tax deduction for the donation and you may save on capital gains tax (this is a huge benefit). Emmanuel does not receive the funds when donated, but through a financial agent, pays you a fixed amount for life. The amount you receive is based on your age. When you die, the remainder of the gift of $10,000 (normally 50%) passes to Emmanuel as your legacy.
Here’s the real attraction: A bank’s savings account may pay you 0.02%. A bank’s CD rate may reach 2% tops. Investment in the stock market goes up and down daily. The CGA gift will pay you a fixed rate of approximately 3.9% if you are age 60, 4.7% if you are 70 years old, and 6.5% if you are age 80. Would you not want to increase your cash flow while you are alive and leave something to Emmanuel upon your passing?
A Charitable Gift Annuity is just one of the options available for a life income gift. Other common options involve your trust documents, your will, and any insurance and/or annuity products available to you. Emmanuel can simply be named a primary or contingent beneficiary.
There are many resources to help you decide. Please contact the church office if you would like more information or help with planning.