What is a Charitable Gift Annuity?
A charitable gift annuity is a simple contract. You make a gift to Catholic Gift Annuity, and in return, you receive fixed payments for life. At your death, the remaining balance of the gift annuity is distributed to the Catholic organization(s) you designated.
What are the Benefits?
- Receive fixed payments for life; a portion of these payments are tax free.
- Receive an income tax deduction for a portion of your gift, as allowable by IRS rules.
- Join a pool of thousands of Catholics in a financially strong program that helps the Catholic Church.
- Feel satisfied in making a significant gift that benefits you now and the Catholic organization(s) of your choice for future generations.
What are the Features?
- Secure, convenient deposit of payments into your preferred bank account.
- Three types of annuities to select from (rates vary):
- Immediate One Life
- Immediate Two Lives – Two recipients
- Deferred – Start payments later
- The Catholic Gift Annuity program combines your gift with others from across the U.S. to increase the impact of your generosity.
- The minimum amount to establish a gift annuity is $5,000; the minimum age to receive income is 55 years old.
Elizabeth, age 78, has enough savings to meet her retirement needs. She wants to help the Church with a generous donation, but is concerned about her future income with the low interest rates available to her.
In the fall of 2023, she established a $10,000 Catholic Gift Annuity, which specified that the remainder of the annuity balance benefit her local parish.
|Annual Annuity Payment||$720.00|
|Tax-Free thru 2032||$479.52|
Elizabeth, who itemizes her deductions when filing her tax return, includes the charitable deduction of $4,966.60. At her 25% tax bracket, this generates a tax savings of $1,241.65.