Has the economy shortchanged you on
returns from your savings, CDs, IRAs or 401ks?
If you are like
most retired or about to be retired Americans, you have seen your retirement
income shrink in the past few years.
Interest rates and the stock market have not met your needs or
expectations. What you really need is
more money now! Waiting for the economy
to recover and stay strong is a gamble you may not want to take.
The Catholic
Foundation may have the solution to your cash flow needs now and in the
future. A Charitable Gift Annuity will
provide payments for the rest of your life.
That’s right! For the rest of
your life!! A Charitable Gift Annuity
can even provide continued lifetime payments for a spouse.
Depending on
your age, you are eligible for favorable payments from a Charitable Gift Annuity
each year for
life. What’s more you will qualify
for an immediate tax deduction when
you establish the annuity and have a partial tax deduction on annuity payments
for years to come.
The Catholic Foundation is ready to assist you. Write to the Catholic Foundation for a free brochure about Charitable Gift Annuities.
Mary P. Dunn
Executive Director
505-872-2901
Frequently Asked
Questions About Charitable Gift Annuities
What is a Charitable Gift Annuity with The Catholic Foundation?
A Charitable
Gift Annuity is a contract between you, the donor, and The Catholic
Foundation. You transfer property such
as cash, securities or real property to the Foundation and the Foundation
provides you with fixed payments for your lifetime and/ or the lifetime of your
spouse. Payments begin at the time of
the contract agreement and are based on the age(s) of the person(s) receiving
payments and the amount of the gift annuity.
A contract can be written to include a person other than a spouse as
long as that person has reached their 60th birthday.
Why is it called a Charitable Gift
Annuity?
It is called a
Charitable Gift Annuity because part of the original gift is intended to be
used as a charitable gift upon completion of the contract. In this case, The Catholic Foundation would
receive the remainder of the original gift upon the death of the individual
annuitant or both annuitants.
Is there a tax advantage in establishing
a Charitable Gift Annuity with The Catholic
Foundation?
Yes. A federal income tax deduction is
allowed. Since part of the original
amount of money placed in the gift annuity is intended for charitable purposes,
a significant part of the original amount becomes eligible for an income tax
deduction in the year in which the gift is made. If the deduction is too large for the
allowable deduction that year, the deduction can be carried over for a period
of five years. Also, if an appreciated asset like stock is used to fund the
gift annuity, the capital gain on the gift portion is bypassed and the capital
gain on the annuity portion is prorated over the life of the annuity.
Who can establish a Charitable Gift
Annuity with The Catholic Foundation?
Virtually anyone
who has reached the age of 60 or older can establish a gift annuity with The
Catholic Foundation. A spouse or another
person must have reached 60 years of age if he or she is included in the
annuity contract.
Is a gift annuity helpful in retirement
planning?
Depending on
individual circumstances, a gift annuity can provide you with fixed payments
that are not affected by fluctuations in the financial markets. A free consultation with a staff member of
The Catholic Foundation can help you make the right decision.
Should I consult a financial advisor or a
lawyer?
After
consultation with The Catholic Foundation you will receive an initial gift
annuity proposal. You will be advised to consult with your lawyer, tax advisor
or financial advisor as to whether a gift annuity meets your financial goals
and charitable giving desires. The
Foundation is not engaged in rendering legal or tax advisories. This brochure
is meant to provide general Charitable Gift Annuity information only.
How would I fund a gift annuity?
Generally, gift
annuities are established with cash.
However, you may have other assets that can be used to establish a gift
annuity with The Catholic Foundation.
For example, you may have securities that have appreciated in value over
the years. If you use them to fund a
gift annuity, you can avoid capital gains tax on part of the gain. The remainder of the capital gains is spread
over your life expectancy. Other assets may also be used to fund a gift
annuity.
Where can I get more information?
A staff member of The Catholic Foundation would be happy to discuss, free of charge, the benefits of a gift annuity and how it can be funded.
Email us at: info@thecatholicfoundation.org or
Call 505-872-2901 or write to us.
2201 San Pedro
NE
Bldg. 2
We will be happy
to meet with you.