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FOR IMMEDIATE RELEASE
Contact: Shirley Freyer
Concordia Lutheran Ministries
Tel: 1-724-352-1571 x8266
sfreyer@concordialm.org

Concordia Charitable Gift Annuities a Smart Financial Tool

Cabot, PA – When it comes to charitable gift annuities, there sometimes exists a level of uncertainty. Rest assured though, that a charitable gift annuity at Concordia yields a number of potential financial benefits – and it’s not as difficult as one may think.

Come July 1, 2008, charitable gift annuity rates will decrease by .2 – .3 percent, making right now the perfect time to consider this type of donation. Concordia offers a free, personal, no-obligation charitable gift annuity analysis to see if this money-saving tool is appropriate for you.

Here’s how a charitable gift annuity generally works:

A donor contributes $5,000 or more to Concordia and receives a “life income” (to be paid out either quarterly or monthly), based on the amount of the gift and the age of the donor. If the donor itemizes deductions on his/her federal income tax return, a charitable contribution deduction is allowed for a portion of the contribution.

At the same time, only a portion of the amount Concordia pays back to the donor (either quarterly or monthly) is taxable for federal income tax purposes. The charitable gift annuity is not a part of the donor’s estate.

As mentioned previously, there are a number of potential financial benefits:

First, and most obviously, establishing a charitable gift annuity at Concordia entitles the donor to a charitable contribution deduction on his/her taxes. For a 75-year-old individual in the 15 percent tax bracket donating $10,000, the charitable contribution deduction would be $3,911on his/her tax return. This could end up saving the individual $587.

Additionally, that same donor would receive annual payments of $710.04 or monthly payments of $59.17. Of that annual $710.04 payout, only $222.95 would be reported as income for federal income tax purposes over the next 13.4 years.

To take advantage of the charitable gift annuity rates before they decrease on July 1, contact Paul Brand, treasurer and CFO at Concordia. He can be reached at (724) 352-1571, ext. 8227.

Concordia charitable gift annuities are not available in all states.