Charitable Gift Annuities

        One of the most common and popular ways to make a planned gift is with
a charitable gift annuity.  It is a simple contract between you and the Church.  In
exchange for an irrevocable gift, the Archdiocese agrees to pay one or two
annuitants a fixed dollar amount each year for life.  The amount is based on life
expectancy: the older you are at the time of the gift, the greater the amount can
be.  The payments are guaranteed by the general resources of the Archdiocese.

        Charitable gift annuities can be funded with cash, real estate, or
appreciated securities. You receive a tax deduction based on your age, the
payout rate, and the federal discount rate.  If you use an appreciated asset,
a portion of each payout will be capital gain, which is therefore spread out over
your lifetime.  Likewise, a part of each payment would be a tax-free return of
principal, increasing the after-tax value of each payment.  And because you
have effectively removed the assets from your estate, you avoid estate taxes.

        A similar type of annuity is the deferred charitable gift annuity. The
arrangement is essentially the same; the difference is that the Church waits to
begin your fixed payout until some specified point in the future (at least
one year).  In either case, at your death the proceeds of the gift annuity become
available for the Parish or the Archdiocese to use in whatever way you wished.

        A deferred charitable gift annuity can be an excellent way to supplement
your retirement income.  The Church receives the gift today and invests it for
years; you receive a current tax deduction, but you don't receive the payments
until you retire, when you may be in a lower income tax bracket.

Advantages:
* Fixed payout offers the security of guaranteed income
* Attractive rate of return
* Can unlock appreciated assets for diversification or increased yield
* Professional asset management
* Opportunity to make a substantial gift to the Church
* Favorable income tax position now and at retirement
* Immediate charitable tax deduction
* Estate tax and probate savings

 

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