Frequently Asked Questions

What is a Charitable Gift Annuity?

The Community Foundation can establish a Charitable Gift Annuity for a donor with one brief meeting and a gift between $10,000 and $500,000.

The donor makes a tax-deductible gift in the form of cash, marketable securities, or other assets.  A contract is signed, which is an irrevocable agreement between the donor and the Community Foundation on behalf of the Fund.

The Community Foundation invests and manages the contribution, and pays the donor a fixed annuity for life, guaranteeing the donor a predictable stream of annual income.

When no longer needed by the donor, the remainder goes to the Fund at the Community Foundation, as designated by the donor.

In general, the donor (annuitant) must be at least 60 years old, although the Community Foundation can accept gifts from younger donors to create deferred annuities that will commence when the donor reaches age 60 or later.

Long-term appreciated assets, such as stocks, that are used to make the gift result in additional tax savings by avoiding capital gains on the charitable portion of the gift.

What are the annuity rates?

The amount of each annuity payment is determined by annuity rate tables published by The American Council on Gift Annuities.  The rates depend upon the value of the initial gift and the number of annuitants and their age.  Here are the 2003 rates:

The Community Foundation can generate exact figures for prospective donors on annuity rates, annual annuity payments, and tax deductions when provided with: donor age, spouse age; gift amount or range.

What Charitable Gift Annuity Services does the Community Foundation provide?

If desired, meet with donors to discuss Charitable Gift Annuities and help them explore their options.

Provide calculations to help donors estimate what annuity payment they could expect, and the amount of the charitable deduction.

Create a contract establishing the Charitable Gift Annuity, and review it with the donor to make sure the gift instrument is understood.

Manage the annuity funds as part of our investment services, including assuming the annuity obligation.

Issue annuity checks to annuitants on a quarterly basis.

Prepare annual Federal tax forms and provide them to donors and annuitants.

Recognizer donors as contributors to the Fund in our annual report.

Transfer the remainder of the Charitable Gift Annuity into the Fund.