Charitable Gift Annuities

Charitable Gift Annuities provide a unique opportunity to make a substantial gift to the work of Global Ministries while still providing for your own personal needs:

  • The donor, or other selected individuals, receive payments for life
  • The donor recieves a charitable tax deduction for part of the gift
  • The charitable remainder goes to Global Ministries

By making a gift of cash, stock to Global Ministries, Global Ministries provides the donor with a guaranteed income for life. A charitable gift annuity provides a consistent rate of return  for the entire life of the individual.

Below is an example of how a charitable gift annuity works:

Mrs. Smith, 79, is retired and living on her investments of CDs and other retirement plans. Her CDs are paying her 2.5% interest. Instead of renewing a CD when it comes due, she decides to enter into a charitable gift annuity agreement which will pay her a higher rate of return for the rest of her life.

In return for her irrevocable gift, she receives – for the rest of her life – an annuity payment of 6.6%. The payment rate is based upon the donor’s age (or age of other beneficiary) and is calculated through actuarial tables provided by the American Council on Gift Annuities (ACGA). The rate remains the same, and will not decrease or increase, during the lifetime of the beneficiary.

Age: 45 50 55 60 65 70 75 80 85
Percentage Rate: 3.3% 3.7% 4.0% 4.4% 4.7% 5.1% 5.8% 6.8% 7.8%

See the full table of current rates from ACGA

When she enters into the gift annuity agreement, Mrs. Smith:

  • Increases her income with higher payments than the interest she was receiving from the CD;
  • Receives annual annuity payments for the rest of her life, with part of those payments being free of tax; and
  • Receives a partial charitable income tax deduction.

If she had used appreciated stock (stock that shows a gain from the date of purchase) instead of CDs to fund the gift, Mrs. Smith also would have been able to bypass some of the capital gains taxes on the appreciation.

Mrs. Smith has the option of including a dependent adult relative (or other) as a second beneficiary to her gift annuity, who will receive the benefit after she dies. See the current ACGA rates on a two-life gift annuity.

If Mrs. Smith were younger and wished to defer her gift annuity payment until her retirement, she can defer until a certain age. To learn more about this option, use the ACGA procedure for calculating suggested deferred Gift Annuity Rates

Because Mrs. Smith named the Division of Overseas Ministries or Wider Church Ministries as the residual beneficiary, at her death (or at the death of both beneficiaries in the case of a two-life gift annuity), the residual of the gift annuity will support Global Ministries vision that all of God's people and creation share in God's abundant life as either a direct gift, or through the establishment of a new endowment fund.

Below are some of the many ways in which you can benefit from a charitable gift annuity:

  • Increase your income.The rates are higher than many other options.
  • Receive a partial charitable income tax deduction.The Internal Revenue Service designates a part of the annuity as a gift, so you receive a charitable income tax reduction for that portion, thus reducing your current income tax.
  • Receive guaranteed annuity payments for the rest of your life and/or for the rest of the life of the person you might designate, with part of these payments being tax free.
  • Avoid some capital gains taxes if using stock to make the gift.
  • Avoid probate cost and estate taxes.
  • Leave a legacy that enables Global Ministries’ mission of sharing the Good News of Jesus Christ by joining with global and local partners to work for justice, reconciliation and peace.

If you are interested in establishing a charitable gift annuity or would like to learn more about this opportunity contact:

Office of Resource Development
Global Ministries
P.O. Box 1986
Indianapolis, IN 46206-1986
(317) 713-2555
gifts@dom.disciples.org


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