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Charitable Gift Annuity
A Charitable Gift Annuity is both a charitable gift and an annuity that pays you (or someone you designate) income.
It is less complex than a trust and much easier to establish. Charitable Gift Annuities are started with an irrevocable gift of cash or other marketable assets. The minimum contribution is $25,000, and you (or the designated annuitant) must be at least 50 years old when the gift is made. The annuity is backed by the assets of the Community Foundation of Broward. Payments are sent in quarterly installments by check or direct deposit.
The gift annuity entitles you to an immediate charitable deduction based on the size of the gift, age and income tax bracket. You can bypass a portion of the capital gains tax and a portion of the income payments are tax-free.
Deferred gift annuities are also available through the Community Foundation of Broward, and by delaying annuity payments, income from these are often significantly higher.
Charitable Gift Annuity Illustration
based on a $100,000 gift
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Age
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Annuity Rate
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Annual Payment
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Tax Free Portion
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65
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5.5
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$5,500
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$3,685
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70
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5.8
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$5,800
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$4,083
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75
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6.4
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$6,400
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$4,698
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80
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7.2
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$7,200
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$5,486
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85
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8.1
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$8,100
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$6,512
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90
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9.5
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$9,500
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$7,876
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Deferred Charitable Gift Annuity Example
At age 55, John establishes a $100,000 gift annuity from the Community Foundation of Broward, but chooses not to begin receiving annuity payments for ten years. He will receive $8,400 annually during his lifetime, of which $3,856 will be tax free.
Our Philanthropic Services department will gladly prepare a personal, custom illustration using your specific information upon your request.
rates shown are effective July 1, 2010 |
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