Planned Giving

Charitable Gift Annuities

A charitable gift annuity is a simple and convenient way to make a charitable gift that benefits both the donor and the charity. Charitable gift annuities combine a charitable gift with an annuity. In return for a gift to the Jewish Federation, the donor receives regular, fixed payments for life. The donor can choose a one- or two-life annuity or designate a third party, such as a child or friend, to receive the gift annuity payments.

Sample Charitable Gift Annuity Rates for 2014

 

Current Age  

 Payout Rate

 65  

 5.9%

 70  

 6.2% 

 75  

 6.8%

 80 

 7.7%

 85 

 8.9%

 90 

 10.5%

 Two-life and deferred rates available.

Funding a Gift Annuity

A gift annuity may be funded with cash or appreciated securities that have been held for at least one year. Charitable gift annuities can be established with a minimum $10,000 contribution.

Donor Benefits

  • Guaranteed payments for life, a portion of which may also be tax-free
  • Income tax deduction in the year the gift is made
  • High payout rates
  • A legacy to future generations of Jews

Charitable Gift Annuity Example

At age 75, you establish a charitable gift annuity with a $10,000 cash gift to the Jewish Federation. Based upon the annuity rate of 6.8% for a 75-year-old, you will receive payments of $680 each year for the rest of your life. A portion of each payment is taxed as ordinary income, and a portion is tax-free. In addition, the gift provides you with a current income tax deduction of approximately $3,462 and the full value of the $10,000 is removed from your estate for estate tax purposes.

 


The Jewish Federation of Metropolitan Chicago does not provide legal advice. Donors are encouraged to consult their independent tax and legal counsel.