Giving Now
Charitable Gift Annuity
The concept of a Gift Annuity is simple. You donate assets which Maryknoll reinvests.
The concept of a Gift Annuity is simple. You donate assets which Maryknoll reinvests. We will pay you a fixed income for life (and, if desired, for another beneficiary's lifetime). The funds are then available for our use.
A charitable gift annuity is particularly attractive because the rates (based on your age) typically produce higher income than the yields from investments in the stock and bond markets. When this aspect is combined with partially tax-free income, the effective rate of return is even higher.
Single life and two-life survivor annuities may be purchased. The minimum gift amount is $5,000 and the minimum age requirement is 50 years.
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Name: |
Helen Grecco |
| Age: |
70 |
| Situation: |
Wants to make charitible gifts now, but is afraid to do so because she may need income from her assets for future living expenses. |
| Gift Plan: |
Created a Charitable Gift Annuity Trust and will receive annual payments for as long as she lives. |
Mrs. Grecco had decided to make a gift to Maryknoll through her will, although she would have preferred to make those gifts now. The thought that she may need income from her assets for future living expenses is what had prevented her from making a large contribution up until now.
After learning about charitable gift annuities, however, she decided to make a gift of $10,000. At her age, she will receive annual payments of $790, or 7.9% of the amount transferred, for as long as she lives, no matter what the earnings from the amount used to fund the annuity.
She'll pay federal income tax on less than one-half the of the payment she receives. She is also able to make deductions, and the amount used to fund the annuity is removed from her estate, saving substantial estate taxes.
Most importantly, Mrs. Grecco enjoys the knowledge that the gift portion of her annuity will be used for Maryknoll.
Case Studies are composites of Maryknoll Donors. The names and images are fictional but the cases use real data and situations. Figures are for demonstrational purposes only. |
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