Charitable Gift Annuities
Charitable Gift Annuities are a unique gift opportunity to provide substantial support for the transformative work of Global Ministries while still providing for your own personal needs. With Charitable Gift Annuities:
- The donor or other individuals receive payments for life
- The donor receives a charitable tax deduction for part of the gift
- The charitable remainder goes to Global Ministries
By making a gift of cash, stock, or other assets to Global Ministries, Global Ministries provides the donor and/or another beneficiary with a guaranteed income for life. A charitable gift annuity provides a consistent rate of return for the entire life of the individual(s).
Benefits of a charitable gift annuity:
- Provide a gift for Global Ministries to continue the work you love and to live out the mission of receiving and sharing the Good News of Jesus Christ by joining with global and local partners to work for justice, reconciliation and peace.
- Increase your income. The rates are higher than many other options.
- 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.
- 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.
- Avoid some capital gains taxes if using stock to make the gift.
- Avoid probate cost and estate taxes.
If you are interested in establishing a charitable gift annuity or would like to learn more about this opportunity, contact:
Office of Resource Development
P.O. Box 1986
Indianapolis, IN 46206-1986
Example of how a Charitable Gift Annuity works for someone like you
Mrs. Smith, 79, is retired and living on her pension, social security, other retirement accounts, and investments of CDs. 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. She understands that the corpus of what was this CD will become a charitable gift, and she no longer will be able to claim it for her own use.
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 the 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.
(This model reflects the suggested rates for a single individual from the American Council on Gift Annuities effective on July 1, 2020)
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.
The charitable gift deduction in part makes up for the corpus of the CD that will no longer have access to. 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 an adult relative (or other) as a second beneficiary to her gift annuity, who will receive the benefit after she dies.
If Mrs. Smith were younger and wished to defer her gift annuity payment until her retirement, she can defer her charitable gift annuity until a certain age.
Because Mrs. Smith named the Division of Overseas Ministries or Wider Church Ministries as the residual beneficiary, at her death, 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.