Gift Annuity Rates Are Going Up
By Fred Koenig
For the first time since 2011, the American Council on Gift Annuities (ACGA) has recommended an increase in gift annuity rates for all new gift annuities, effective July 1, 2018. This is great news for anyone looking for a way to do some charitable giving while locking in fixed payments for life.
“Rates for individuals and couples are increasing about a half percent across all age brackets,” Foundation Executive Director, David Atkins said. “This makes the traditional gift annuity even more attractive for seniors.”
The Missouri UM Foundation is a member of the ACGA which sets the rates followed by most major charitable organizations.
How It Works
The concept is simple. The donor makes a donation using cash, marketable securities or other assets to the Foundation to create a gift annuity. In turn, the Foundation pays the donor a fixed annual payment for life based on the age of the donor and the amount of the gift. Payments can be directly deposited to the donor’s bank account, and the Foundation supplies a Form 1099 each year for tax reporting purposes. The donor can name their local church or other favorite charity(ies) to receive the remaining value in the annuity at the death of the donor.
The initial gift is usually tax deductible (for those who itemize and can use it), a portion of the annual payments are tax-free, and the payments are guaranteed for life.
Contact the Foundation for a free and customized illustration showing you the benefits of your own charitable gift annuity. The illustration will include a complete calculation showing your fixed payments, the tax-free portion of those payments, potential income tax savings, and additional information to share with your family and professional advisors. Contact Myles Hinkel at the Foundation office at 573-875-4168 or email@example.com, or visit www.mumf.org.