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Financial
Donations: Charitable Gift Annuity
A charitable gift annuity is a simple agreement between you and
Morgan Memorial Goodwill Industries. Many donors find the charitable
gift annuity a good way to both make a gift to Goodwill and receive
income for life.
With a charitable gift annuity, in exchange for your irrevocable
gift (the minimum amount is $5,000), Goodwill will pay you or another
person you choose an annual fixed income for life. This income is
guaranteed for life.
The annuity rate is determined by the age of the person designated
to receive the income (the annuitant) at the time the gift is made.
Annuity Rate Table
See below the benefits of creating a $25,000 charitable gift annuity
for one and two annuitants, including an estimated charitable income
tax deduction.
One
Annuitant
| Age |
Annuity
Rate |
Deduction |
Annual
Income |
| 60 |
5.7% |
$6,415.50 |
$1,425.00 |
| 65 |
6.0% |
$7,775.25 |
$1,500.00 |
| 70 |
6.5% |
$8,984.50 |
$1,625.00 |
| 75 |
7.1% |
$10,386.75 |
$1,775.00 |
| 80 |
8.0% |
$11,739.75 |
$2,000.00 |
| 85 |
9.5% |
$12,747.25 |
$2,375.00 |
| 90 |
11.3% |
$14,037.25 |
$2,825.00 |
........................................................................................................................
Two
Annuitants
Please
note: These calculations are based on the September 2003 discount
rate (4.2%) The discount rate varies slightly from month to month.
We would advise you to consult with your tax and legal advisors
prior to making a planned gift.
| Age |
Annuity
Rate |
Deduction |
Annual
Income |
| 55,60 |
5.0% |
$4,504.25 |
$1,250.00 |
| 60,65 |
5.5% |
$4,446.00 |
$1,375.00 |
| 65,70 |
5.7% |
$5,982.00 |
$1,425.00 |
| 70,
75 |
6.1% |
$7,286.75 |
$1,525.00 |
| 75,80 |
6.6% |
$8,817.75 |
$1,650.00 |
| 80,85 |
7.3% |
$10,415.00 |
$1,825.00 |
| 85,90 |
8.4% |
$11,796.00 |
$2,100.00 |
Benefits
to Donors:
As a donor, you receive a fixed annual income for you and another
person you choose for life. In addition, you receive:
- Immediate
federal income tax deduction for the gift portion of the annuity.
-
Partially tax-free income, increasing your overall return.
- Avoidance
of a portion of the capital gains tax when you fund the annuity
with long-term appreciated securities.
Annuity payments
can be immediate or deferred. By deferring payments, both the annuity
rate and income tax deduction increase because the projected present
value of payments is less.
Most donors over the age of 75 will find the gift annuity attractive
for its high guaranteed payments and simplicity. The contract is
typically one page in length.
Goodwill’s minimum age for a charitable gift annuity is 60
years old. However, donors who are under 60 may establish a charitable
gift annuity with deferred payments.
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