Charitable Gift Annuity Program

1
Charitable Gift Annuity Program

• Catholic Foundation
• Diocese of St.Petersburg

2
Introduction

• A charitable gift annuity enables interested
  individuals to
• Support the ministry of the Catholic Church
  through an irrevocable gift
• Receive fixed payments at a rate well above CDs
  Money Markets
• Obtain substantial tax savings

3
Give money or property to the Church
High fixed payouts
Payments made to donors for life
Tax deductions
Upon death remainder is given to Church
4
73 Year Old Gift 20,000 Cost 10,000Gift
Annuity Rate 6.8Charitable Deduction
9,102.80Total Annual Payment 1,360Tax-free
Portion 395.08 Capital Gain is Reduced by
4,551.40 and is Reportable Over the Expected
Lifetime of the Donor.
5
Comparison

• Tax
• CGA Deduction of 9,102.80
• CD/MM Payment of 1500 - 2000 on Capital Gain
• Annual Payments
• CGA 1,360 (395.08 tax free) (6.8)
• CD/MM 960 (0 tax free) (4.8)
• CGA rate fixed for life, CD/MM rate dependent
  on stock market

6
Charitable Gift Annuity Process

• The donor expresses interest and is given an
  exact accounting of the annuity payments they
  will receive without obligation.

7
The Annuity is Finalized

• A simple contract is signed between the Diocese
  and the individual(s) designating
• the beneficiary of the annuity
• the exact rate of return and tax
• deductions from the gift.

8
Points to Remember
Irrevocable Gift the individual cannot get back
the principal
9
Points to Remember

• Annuity payments are above market and never
  decrease for the remainder of the annuitants
  life.
• Tax deductions are given for the initial gift and
  for subsequent payments for a number of years.
• The rate depends upon a persons age and whether
  the annuity is for one or two lives.

10
Points to Remember

• The rate is fixed according to national
  standards.
• Payments are made quarterly, at the end of each
  quarter.
• Upon the donors death the balance of the gift
  benefits the parish or ministry designated by the
  donor.