HOW: As a donor, you make a sizable gift to United Way of Olmsted County using cash, securities or possibly other assets. In return, you become eligible to take a partial tax deduction for your donation, plus you receive a fixed stream of income from the charity for the rest of your life. Individuals or couples can set up a charitable gift annuity. You are the “annuitants,” which is the specific name for beneficiaries of annuities and many insurance policies. Minimum gifts for establishing a charitable gift annuity may be as low as $5,000, but are often much larger.
BENEFITS:
- Convert highly appreciated buy low-yielding assets into a lifetime income stream.
- Reduced capital gains costs with immediate income tax deduction.
- Guaranteed fixed income payments (higher payment rate from any other life-income gift) for life, a portion of which is nontaxable.
- Possibility of donating many types of assets: cash, securities plus personal property.
The pay-out rate on an annuity is based on the age of the donor at the time the gift is made. At the time of death, the amount remaining in the charitable gift annuity is given to United Way. This is an irrevocable gift to the United Way in return for a guarantee to receive a life-time annuity payment from United Way.
