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If you’d like to support the Anne Carlsen Center’s mission while receiving steady payments during your retirement years, a charitable gift annuity may be right for you. If you are not yet retired, there are options for you as well. A deferred charitable gift annuity may be the right charitable gift for you. You’ll receive the same benefits as regular gift annuities but with considerably higher rates.
Through a simple charitable gift annuity contract, you agree to make a donation of cash, stocks or other assets to the Anne Carlsen Center. In return, we agree to pay you, and one other person if you choose, a fixed amount each year for the rest of your life.
With a deferred charitable gift annuity you make the contribution to us now, securing a current income tax charitable deduction. Anne Carlsen Center provides you with fixed payments for life starting at any date you select. This is especially advantageous if your tax bracket is higher now than it will be later when you retire. The rate depends on your age now and your age when the payments will begin. Because payments are deferred, the rate is considerably higher than with an immediate gift annuity. Your charitable deduction is also larger when you choose to defer the start of your payments.
Profile of a Giver of this Gift
- You want to support the Anne Carlsen Center over a long term period.
- You desire stable payments that are unaffected by changes in the economy.
- You are nearing retirement and would like to arrange for an extra steady stream of payments to supplement other retirement income, either now or later.
- You are able to part with cash, stocks or other assets today while maintaining and possibly increasing income received from these assets.
- You desire income tax relief this year.
Is this Gift Right for You?
A charitable gift annuity works for Anne Carlsen Center supporters who would like to make a gift and receive steady payments in return whether retired currently or planning to retire in the future.
Benefits of this Gift
In addition to providing a gift to the Anne Carlsen Center and receiving fixed payments for life, you also receive these benefits:
- Your initial gift is partially income tax–deductible.
- Your charitable gift annuity payments are partially income tax–free throughout your estimated life expectancy.
- Your payments are not affected by ups and downs in the economy.
- The gift annuity can be for one or two people, so your spouse or another loved one can also receive payments for life.
- If you use appreciated stock to make a gift, you can usually eliminate capital gains tax on a portion of the gift and spread the rest of the gain over your life expectancy.
- Contributions to IRAs, 401(k) plans and other retirement plans are limited therefore the deferred payment gift annuity is a good way to provide the additional retirement income you desire.
How to Make this Gift
In just five steps, you can create a gift that will provide for your future as well as ours.
1. Finalize your charitable goals - Think about your goals for our organization’s future and then determine what you wish to support. You may either restrict your gift to benefit a particular program or area within ACC or leave the gift unrestricted, allowing our senior management to use your gift for our most pressing needs.
2. Determine which asset to donate – You can fund your gift annuity with cash, stocks or another asset. When making your decision, consider the asset’s fair market value and cost basis. Also, compare the asset’s income to the proposed gift annuity payments.
3. State who should receive the payments – Gift annuities make lifetime payments you can never outlive. You can also provide payments for another individual—typically your spouse, but could also be a parent, other family member or friend.
4. Decide your payment date – Your payments may begin immediately, or you can defer your payments into the future, such as five or ten years from now. Deferring your payments benefits you by increasing your annual payout as well as your income tax deduction. You must also decide if you want to receive your payments quarterly, semiannually or annually.
5. Complete the paperwork – Contact us to finalize your plans. We can meet with you and help you complete the simple contract that puts your generous plans into action. Please keep in mind that your donation is irrevocable, meaning that you cannot change your mind once you complete the gift. Also, there may be minimums associated with this type of gift.
For More Information
We understand these gifts are complicated, that’s why we would be happy to work with you and your advisors to discuss a potential gift that meets your financial goals while also supporting our mission. You are not alone in making these life-impacting decisions. Please contact the Anne Carlsen Center Foundation at 1-800-568-5175 to help you answer any questions you may have or to futher discuss your giving options.
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The information on this website is not intended as legal or tax advice. For legal or tax advice, please consult an attorney. References to estate and income taxes apply to federal taxes only. State income/estate taxes or state law may impact your results.
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