BroMenn Foundation Charitable Gift Annuities
A charitable gift annuity Is an excellent way to "do well by doing good." In exchange for an irrevocable charitable gift to the organization, the donor(s) receive a predetermined annuity -- the amount of which is determined by the age of the donor(s) and if the charitable gift annuity is for one or two donors.
The chart below demonstrates the rate of return for a single donor.
|
Your Age
|
Rate of Return
|
|
60
|
5.0%
|
|
65
|
5.3%
|
|
70
|
5.7%
|
|
75
|
6.3%
|
|
80
|
8.1%
|
|
90
|
9.5%
|
A Case Study of Benefits
Linda, age 75, plans to donate a maturing $25,000 Certificate of Deposit that is maturing. Since she needs continuing income, Linda decides to use the cash from the Certificate for a one-life charitable gift annuity that BroMenn will issue at the suggested rate of 6.3 percent. The annual payment from the gift annuity is $1575, and she has chosen to receive the payments quarterly.
Through a charitable gift annuity, Linda will receive a number of financial benefits:
- A portion of the gift annuity payment ($1174.95) is the return of principal and therefore not taxable
- An income tax deduction, because Linda itemizes -- in this example $13,473.50 (based on an IRS Discount Rate of 2.6%)
So, not only will Linda realize an attractive return, she will enjoy the benefit of a tax deduction.
What is also important to Linda is that she is supporting the mission of BroMenn and the perpetuation of high-quality caring in the community where she lives.
Additional Information
Payments are backed by the full faith and credit of the BroMenn Healthcare System. They are not insured by an insurance company nor are they backed by any government agency. Rates are subject to change, and the rates used are determined by the American Council on Gift Annuities.
View definitions and use our planned giving calculator.
In Summary
Charitable gift annuities are an excellent method of achieving your philanthropic goals and gaining substantial tax benefits.
BroMenn Foundation is available to answer any questions and provide projected results for your specific situation, confidentially and with no obligation.
Please call BroMenn Foundation at (309) 268-5966, or e-mail srigo@bromenn.org for a Charitable Gift Annuity brochure or other information.
The information on this site is not intended as legal, tax or investment advice. For such advice, please consult an attorney or a tax professional.
BroMenn Foundation is a not-for-profit 501(c)(3) organization.