Nonprofit organizations like Concordia rely on a number of sources for revenue to carry out their respective missions operations, investments, grants, etc. Another major pathway for income is through donations.
And while there are undoubtedly enough fundraising/development topics to sustain a blog for years, today we're just looking at a gift that provides you income for life: charitable gift annuities.
A charitable gift annuity is a way for you to make a charitable gift and receive a monthly or quarterly income for life. It is a contract under which the nonprofit, in return for a transfer of cash, stock or other property, agrees to pay you a fixed sum of money for the rest of your life and/or your spouse's life, depending on your selection of a one or two life agreement.
Effective July 1, 2010, the suggested Charitable Gift Annuity Rates, as approved by the American Council on Gift Annuities are as follows:
Age 70 = 5.8%
Age 80 = 7.2%
Age 85 = 8.1%
Age 90 = 9.5%
For example, a 70 year young person decides she would like to make a charitable gift of $10,000 to Concordia Lutheran Ministries' Foundation through the charitable gift annuity program to establish a single-life charitable gift annuity. The donor has selected Concordia's Good Samaritan Endowment Fund as the beneficiary of this contract. The gift annuity rate on this contract is 5.8 percent for a payout of $46.67 a month for the rest the donor's life.
This is simply an example. Each donor's annuity rate for the charitable gift annuity varies depending on their age at the time of signing the charitable gift agreement. (Minimum gift amount -- $5,000)
If you're not ready for retirement yet and want to plan for future income while fulfilling your desire to make a charitable gift, there are also flexible deferred gift annuities. In short, you make the gift and benefit from the charitable contribution now and receive the income later in life when you need it more.
Payments from a charitable gift annuity are fixed from the outset. Deferred Gift Annuity rates are set based on the date which income distribution is scheduled to begin. Once payments begin, they will neither increase nor decrease, regardless of what happens to interest rates or the stock market. The nonprofit is contractually obligated to make the payments according to the gift annuity agreement.
For questions or to get more information on the benefits of making a gift through Concordia's Charitable Gift Annuity program, contact Director of Development Jennifer McIntire at 724.352.1571, ext.8363 or e-mail here.