American Council on Gift
Annuities lowers payout rates on new gift annuities
The payout rates on
charitable gift annuities written July 1, 2008, and
afterward will be reduced. The Christian Church Foundation,
which handles this life-income gift contractual agreement
for ministries of the church, suggests individuals
contemplating this type of gift plan to complete it prior to
June 30 to receive the current, higher payout rates.
The
charitable gift annuity is one of the oldest and
simplest forms of a deferred gift. An asset, for example,
cash or marketable securities, is transferred to the
Christian Church Foundation, which contractually guarantees
the payment of a specified annuity to the donor and/or
another annuitant for life. The payout rate is determined by
the ages of the annuitants. At the death of the last
annuitant, the residual goes to your congregation or to any
institution or ministry of the Christian Church (Disciples
of Christ). The residual also can be divided among several
ministries or used to create a
permanent endowment for the church.
Click here to view our pre-July 1 Guide to a Charitable Gift
Annuity brochure (PDF).
If you enter into a Gift
Annuity Agreement, you receive a charitable deduction for
income tax purposes. The amount of the deduction is
established by Treasury Tables. Another important feature of
a charitable gift annuity is that a portion of your annual
payment from the annuity may be tax-free throughout your
life expectancy.
The Christian Church
Foundation uses the rates recommended by the American
Council on Gift Annuities, which apply to both males and
females. Effective July 1, 2008, the payout rates are being
reduced for new gift annuities, so individuals considering
this type of planned gift and desiring the current, higher
payout rate, must have the contract completed by June 30,
2008. The table below shows a sample of the current rates
and the new rates. The minimum gift annuity with the
Foundation is $2,500.
|
One Life
|
Two Lives
|
|
Age
|
Current
|
Rate after 7/1
|
Ages
|
Current
|
Rate after 7/1
|
|
60
|
5.7%
|
5.5%
|
60-60
|
5.4%
|
5.2%
|
|
65
|
6.0%
|
5.7%
|
65-65
|
5.6%
|
5.4%
|
|
70
|
6.5%
|
6.1%
|
70-70
|
5.9%
|
5.6%
|
|
75
|
7.1%
|
6.7%
|
75-75
|
6.3%
|
6.0%
|
|
80
|
8.0%
|
7.6%
|
80-80
|
6.9%
|
6.6%
|
If you are contemplating this
type of gift, please call us at (800) 668-8016 to receive a
free, confidential proposal. |
