You've heard the old adage that it's better to give than to receive. But with a charitable gift annuity, you help yourself at the same time you are helping us.
Add Up the Numbers
A charitable gift annuity provides annuity payments to you for your entire life in exchange for a gift to us. After your lifetime, the balance is available to help support our mission.
Please contact Development Office at 323-761-8704, or via e-mail at development@jewishfoundationla.org, for more information.
1This figure is calculated using quarterly payments and a 2.4 percent charitable midterm federal rate, a figure used by the IRS in determining the future value of a gift.
Click on the icon to receive your FREE guide to charitable gift annuities.
Add Up the Numbers
A charitable gift annuity provides annuity payments to you for your entire life in exchange for a gift to us. After your lifetime, the balance is available to help support our mission.
Most organizations use annuity rates recommended by the American Council on Gift Annuities.* These rates are the same for men and women and are slightly lower for two annuitants of the same age.
Let's look at what these rates mean for a donor aged 75. Jane has long wanted to make a significant gift to Jewish Community Foundation of Los Angeles, but she likes the security of receiving income payments from her assets, and she doesn't want to give that up.
After hearing about the benefits of charitable gift annuities though, Jane finds that she can make a charitable gift and receive a steady stream of payments. With a gift of $10,000 to Jewish Community Foundation of Los Angeles, she sets up an annuity that pays her $630 annually in quarterly installments (6.3 percent of her $10,000 gift).
As a result of her generosity, Jane will also be able to claim a charitable deduction of $4,170 on her income tax return in the year she makes the gift.1 At her 28 percent annual income tax rate, this saves her $1,168-making her out-of-pocket cost for the gift only $8,832. Taking into account her tax savings, with each annual annuity payment of $630, she is actually receiving 7.1 percent of her out-of-pocket cost.
Assuming she lives to age 87, her life expectancy, nearly three-fourths of the annuity installments she receives will be nontaxable. To realize the same after-tax amount to spend or reinvest, an all-taxable return would have to be 9.2 percent on net cost for these years.
Let's look at what these rates mean for a donor aged 75. Jane has long wanted to make a significant gift to Jewish Community Foundation of Los Angeles, but she likes the security of receiving income payments from her assets, and she doesn't want to give that up.
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The rate of return is slightly lower for two lives because the period of payment generally is longer. |
After hearing about the benefits of charitable gift annuities though, Jane finds that she can make a charitable gift and receive a steady stream of payments. With a gift of $10,000 to Jewish Community Foundation of Los Angeles, she sets up an annuity that pays her $630 annually in quarterly installments (6.3 percent of her $10,000 gift).
As a result of her generosity, Jane will also be able to claim a charitable deduction of $4,170 on her income tax return in the year she makes the gift.1 At her 28 percent annual income tax rate, this saves her $1,168-making her out-of-pocket cost for the gift only $8,832. Taking into account her tax savings, with each annual annuity payment of $630, she is actually receiving 7.1 percent of her out-of-pocket cost.
Assuming she lives to age 87, her life expectancy, nearly three-fourths of the annuity installments she receives will be nontaxable. To realize the same after-tax amount to spend or reinvest, an all-taxable return would have to be 9.2 percent on net cost for these years.
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Calculate how a charitable gift annuity can benefit you. |
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Calculate how a deferred charitable gift annuity can benefit you. |
Please contact Development Office at 323-761-8704, or via e-mail at development@jewishfoundationla.org, for more information.
1This figure is calculated using quarterly payments and a 2.4 percent charitable midterm federal rate, a figure used by the IRS in determining the future value of a gift.
Click on the icon to receive your FREE guide to charitable gift annuities.