The Charitable Gift Annuity
 

What is a Charitable Gift Annuity?

A charitable gift annuity is an agreement between you and the United Methodist Foundation of Indiana, Inc. under which the Foundation agrees to pay you fixed payments for your life or for the life of your chosen beneficiaries.  It's an uncomplicated gift, and one that is very popular because both parties -- you and the ministries you support -- benefit from the arrangement.
 

Why Are Charitable Gift Annuities Popular?

The gift annuity is very popular life income plan for several reasons: it requires only modest contribution and you can fund it with different assets.  You also receive an immediate income tax charitable deduction for part of the gift, reduce your capital gains tax liability, and often increase your spendable income.  What's more, part of the annuity payments you receive may be tax-free, which increases your effective return.

How are payments determined?

The amount of the annuity payment is based on the ages of the income recipients and the amount or value of the gift made to the Foundation.  Generally, the older the annuitant, the higher the payment rate.  You may receive payments on a quarterly, semiannual, or annual basis.

Is a Gift Annuity Right for you?

If you can identify with any of the following statements, you may want to consider a gift annuity.

• You have a modest amount of cash or property to give, but you want to make a significant gift.

• You want to receive an income tax deduction.

• You would like to receive income payments for life.

• You want to receive payments that are fixed, and immune from the volatility of the stock market.

• You wish to give a friend or family member income payment for his or her life.

• You would like to spread out the capital gains tax liability over your life expectancy, rather than paying it immediately in a lump sum.