Benefitting AHA through a charitable gift annuity

Benefitting AHA through a charitable gift annuity

This type of gift can provide a lifetime of interest income that will be comparable to and often greater than what might be possible with other income-generating investments.  There are two broad gifting options that can be tailored to your specific circumstances.

Charitable Gift Annuity:

A Charitable Gift Annuity is a contract between you and the Academy of Holy Angels. The school agrees to pay a predetermined amount to you and/or your beneficiaries on a regular basis (quarterly, semi-annually, or annually) for life, in exchange for assets which you transfer to the Academy of Holy Angels.

Here is one example of a Charitable Gift Annuity

Mr. Smith, age 70, bought stock several years ago for $10,000.  Today, that stock is worth $100,000 and yields three percent.  To receive a higher return to the Academy of Holy Angels, Mr. Smith transfers the stock to the school and establishes a charitable gift annuity.  Based on his age, he receives an income tax deduction of $39,518 in the year of the gift.  He also more than doubles his return from three to six and a half percent.  He will receive $6,500 every year for the rest of his life.

Charitable Remainder Trust:

A Charitable Remainder Trust is an irrevocable trust which provides payments to you and/or other beneficiaries, with the remainder going to the Academy of Holy Angels after a period of time or the lives of the beneficiaries.  These trusts provide numerous advantages, including:

  • An income tax deduction in the year the trust is established.
  • A source of cash flow for the life of the donor or other loved ones.
  • Valuable estate tax benefits

Here is one example of a Charitable Remainder Trust:

Mr. and Mrs. Smith, ages 70 and 72, establish a five percent charitable remainder trust with an appreciated asset worth $250,000 that they purchased for $50,000.  They receive an immediate income tax deduction of $109,410 (based on their age and payout rate when the trust is established).  They receive an annual payment equal to five percent of the value of the assets inside the trust.

Of course, the Academy of Holy Angels can work with your financial advisors to determine the best planned gift option for you and your family.

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