planned-giving

“Give, and it will be given to you. A good measure, pressed down, shaken together and running over, will be poured into your lap. For with the measure you use, it will be measured to you.”  - Luke 6:38

As a recipient and steward of God’s bountiful gifts, you have an obligation and opportunity to share and return those gifts, providing support to God’s church and ministries beyond your lifetime.

CHARITABLE GIFT ANNUITY

A charitable gift annuity can provide support for Sharon Presbyterian Church and income for you. A charitable gift annuity (CGA) is a combination of a gift to charity and an annuity contract.  You transfer assets to Sharon Presbyterian Church; in return, we agree to make regular, fixed payments to you for the rest of your life.  By its very nature, a CGA allows a higher return than most investments.  You receive a charitable income tax deduction for a portion of the value of your gift. Any capital gains tax on appreciated securities is spread over the life of the annuity, and some of the annuity income is tax-free for a certain number of years, depending on the age(s) of the beneficiary(ies).  Annuity payments may begin immediately, or they may be deferred to sometime in the future.  The longer the wait, the higher the income and the greater the tax deduction.

There are two main types of income annuities:

Immediate Income Annuity:

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Example: Mr. and Mrs. Jones, ages 68 and 73, donate $50,000 from a Certificate of Deposit (CD) to Sharon Presbyterian Church for a gift annuity. The couple, and then surviving spouse, will receive lifetime annual payments of $3,550, paid quarterly.  Of this amount $614.15 is tax-free and $2,935.85 is taxable income. The Jones’ charitable deduction for the remainder interest is $37,513.23 and the expected return is $72,420.

 

Deferred Income Annuity:

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Example: Bob, 70, and his wife Janet, 65, decide to contribute $250,000 in cash for a deferred gift annuity that will begin making payments when Janet retires on Dec. 31, 2018. Their gift generates a charitable deduction of $55,807 in the year they establish the annuity, and they will receive a payout rate of 6.8 percent ($17,000 each year in quarterly payments beginning Dec. 31, 2018). Of the $17,000, $10,387 will be tax-free for their joint life expectancy of 18.7 years. The $17,000 annuity will continue after the first spouse passes away. After the second spouse passes away, the remaining amount will support Sharon Presbyterian Church’s mission.

Benefits of this type of gift to You:

  • A secure source of annual income distributed for life or a fixed period to you or to whomever you designate.
  • Your annuity payments may be treated as part ordinary income, part capital gains income, and part tax-free for your estimated life expectancy.
  • Your initial gift may be eligible for a tax deduction the year the annuity is established and any unused deductions may be used over the next four years as long as you itemize and maximize your available deductions each year.
  • You may avoid some capital gains tax when using appreciated securities.
  • After the lifetime(s) of annuitant(s), the remaining value is distributed to the church.

Next Steps:

Contact us to talk more specifically about the benefits of a charitable gift annuity to Sharon Presbyterian Church.

Contact:

Senior Pastor Rob Blumer
Email: robb@sharonpcusa.org
Phone: (704) 553-0869

Associate Pastor Ron Nelson
Email: ron@sharonpcusa.org
Phone: (704) 553-0869

The above gift description is for informational purposes and not intended as legal or tax advice. To ensure that this form of gift is appropriate for your particular circumstances and estate planning, please consult with your professional advisers.

Last Published: September 12, 2017 10:55 AM
Steps to a Gift