CHARITABLE GIFT ANNUITY
Gifts That Pay You Income
There’s a way for you to support More than Apples and feel confident that you have dependable income in your retirement years. If you are 65 or older, you can do this with a charitable gift annuity.
With a charitable gift annuity you agree to make a gift to More than Apples (minimum amount to establish an annuity is $10,000) and we, in return, agree to pay you (and someone else, if you choose) a fixed amount each year for the rest of your life. The balance is used to support our work.
This type of donation can provide you with regular payments for life and allow More than Apples to further our mission. You can also qualify for a variety of tax benefits depending on how you fund your gift.
If you fund your gift annuity with cash or appreciated property, you qualify for a federal income tax deduction if you itemize. In addition, you can minimize capital gains taxes when you fund your gift with appreciated property.
And now, you can fund your gift using your IRA assets. If you are 70½ and older, you can make a one-time election of up to $50,000 to fund a gift annuity. While your gift does not qualify for an income tax deduction, it does escape income tax liability on the transfer and count toward all or part of your required minimum distributions.
GIFTS THAT PAY
Your payments depend on your age at the time of the donation. If you are 55 or older, we recommend that you learn more about your options and download this FREE guide Deferred Gift Annuities: Plan Now, Benefit Later.
AN EXAMPLE OF HOW IT WORKS
Dennis, 75, and Mary, 73, want to make a contribution to More than Apples but they also want to ensure that they have dependable income during their retirement years. They fund a $25,000 charitable gift annuity with appreciated stock that they originally purchased for $10,000.
Based on their ages, they will receive a payment rate of 5.7%, which means that they will receive $1,425 each year for the remainder of their lives. They’re also eligible for a federal income tax charitable deduction of $10,306* when they itemize.
*Based on a 5.2% charitable midterm federal rate. Deductions and calculations will vary depending on your personal circumstances.
