Please complete this form and return it to the Idaho Community Foundation. The information you provide does not obligate you in any way to contribute for a gift Charitable The Idaho Community Foundation (ICF) is a statewide philanthropic organization annuity. It simply allows the Foundation to whose mission is to enrich life’s quality prepare an annuity illustration for you. 1. I am interested in an illustration for: Gift Annuity throughout Idaho. The Foundation gathers funds from donors, helping them achieve Ë One life (payments made to you for the duration their charitable objectives; grows the funds of your life OR to another person for the duration over time through a sound investment of his or her life) process; and makes grants for a wide variety Ë Two lives (payments made to you and another of charitable projects. person for the duration of your lives OR to two other persons for the duration of their lives) 2. The illustration should be for an annuity in the amount of $__________. (The minimum Enriching life’s quality throughout Idaho since 1988 contribution for a gift annuity is $10,000.) 3. The property contributed for the annuity would THE CHARITABLE be: Ë Cash Ë Publicly Traded Stocks Ë Other 210 West State Street GIFT ANNUITY Please indicate approximate cost basis if property is P.O. Box 8143, Boise, ID 83702 other than cash. Cost basis $__________ Phone: 208-342-3535 Have you ever dreamed of making a truly 4. Name(s) and date(s) of birth of annuitant(s): FAX 208-342-3577 substantial gift to your favorite charity, but First annuitant: were stopped by the concern that your Email: firstname.lastname@example.org assets might not last as long as you do? If Name ___________________________________ Website: www.idcomfdn.org you face this dilemma, here’s good news: Address ___________________________________ you may be able to make a substantial gift City, State, ZIP _____________________________ to charity and improve your cash flow Date of birth _______________________________ through an Idaho Community Foundation Second annuitant (if any): gift annuity. Name ___________________________________ Address ___________________________________ City, State, ZIP _____________________________ Date of birth _______________________________ 5. Indicate the date on which you would prefer annuity payments to begin: Ë Immediately Ë Other later date:__________ 6. Your name and daytime phone number and/or G uaranteed Lifetime Payments With an Idaho Community Foundation gift The information in this brochure does not constitute legal or annuity, you simultaneously make a chari- E-mail address: financial advice and should not be relied upon as a substitute for table gift and arrange for lifetime payment professional advice. The Idaho Community Foundation encourages __________________________________________ you to seek professional legal, estate planning, and financial advice of a fixed sum of money to any one or two __________________________________________ before deciding on a course of action. The examples in this brochure persons (annuitants). Single people often are based on current gift annuity rates and a representative federal __________________________________________ discount rate. This brochure was last updated in January of 2003. establish gift annuities for themselves, thereby securing a stream of payments that will continue for the rest of their lives. If you are married, you may choose a joint- and-survivor annuity with payments made as long as either spouse lives. It’s also possible to provide a lifetime annu- G ift Annuity Rates The rates offered by the Idaho Community Example: Mr. and Mrs. T, ages 74 and 73, contribute stock valued at $40,000 for which they paid $15,000 some years ago. The stock’s current dividend is 2 percent, or $800 per year. The annual payments Y our Charitable Legacy Once gift annuity payments cease, what Foundation are those suggested by the from the annuity will be $2,560, more remains of your original contribution ity for people other than yourself or a becomes available to be used by the Idaho spouse--parents, siblings, or close friends, for American Council on Gift Annuities, a than three times what they are now nationwide organization formed to insure receiving in dividends, and each payment Community Foundation as agreed upon by example. Sometimes it can make sense for you and the Foundation. In most cases, an payments to be made first to one person and that the annuity amounts paid by charities will be taxed as follows for the duration are reasonable and appropriate. Here are of their life expectancy: $1,028 ordinary endowed fund bearing the name of the then to another, if he or she is still living. donor is created, and distributions are made sample gift annuity rates for certain ages. income, $958 capital gain, and $574 tax- The minimum amount to establish an ICF free. Another benefit is an income tax annually in perpetuity as designated in gift annuity is $10,000. The size of the pay- deduction of $13,031 they can claim as advance by the donor. ments depends on the age(s) of the annui- One Beneficiary Two Beneficiaries an itemized deduction. tant(s) and the size of your contribution. The older the annuitant(s) when the annu- ity payments start, the larger the payments. Age 65 70 Rate 6.3% 6.7 Ages 65/65 70/70 Rate 5.8% 6.1 S ervices for Nonprofits An annuitant must be at least age 60 before payments start. The payments will never change, no matter what happens to the economy or interest rates. Payments are typically made in four equal installments, 75 80 85 90 7.3 8.3 9.7 11.5 75/75 80/80 85/85 90/90 6.5 7.1 8.1 9.5 D efer Your Payments Possibly you are still at the height of your If you know of a nonprofit entity that has declined to start a gift annuity program because of the cost and burden of main- taining such a program, please have them one at the end of each calendar quarter. career and do not need additional income contact the Idaho Community Foundation. now, although you would like to accumu- As one of its many philanthropic services, A gift annuity offers special bonuses at tax late more for retirement during the next 10 time, too: you receive an income tax charita- ICF can partner with agencies wishing to or 15 years. The problem is that you are offer gift annuities as a tool to build their ble deduction in the year of your gift and, already contributing the maximum allow- during the actuarial lifetime(s) of the annui- own endowments. able to your 401(k), Keogh, or other quali- tant(s), a portion of the payments will be tax-free when cash was contributed and usu- ally if other assets were contributed as well. U se Your Appreciated Property Funding your own gift annuity with appre- fied retirement plan. You can contribute for a charitable gift annuity and stipulate that payments will begin at whatever age you retire. A portion of your contribution will be deductible now T o Know More: Example: Ms. M, age 79, contributes ciated securities can be a practical way to A representative of the Idaho Community $10,000 cash and receives a lifetime (and it will grow tax free), plus once Foundation would be pleased to furnish you make a gift and increase your cash flow at payments begin, they will be considerably annuity of $800 per year, of which $542 the same time. You will avoid tax on a por- information about current annuity rates is tax-free for the first 9 years (her actuar- higher than if they had begun immediately. and to explain just how a gift annuity can tion of the gain, and the tax on the In addition to cash, you may contribute ial life expectancy). She also receives an work for you. If you wish, we will provide a remainder will be spread over your actuarial appreciated securities and other property and income tax deduction of $4,905, resulting personalized illustration showing the in tax savings in the year she makes her lifetime. Your income tax charitable deduc- defer tax on the gain. Furthermore, there is amount of your payments and the tax gift. (Note: The amount of the charitable tion will be the same as if you had con- no limit to how much you can contribute. implications of whatever contribution you deduction is based on the age(s) of the tributed cash, though the maximum If you are already retired or semi-retired are considering. We encourage you to annuitant(s), the annuity rate, and the amount you can use in any one year is 30 and find your current cash flow to be satis- review the illustration with your own federal discount rate in effect at the time percent of your adjusted gross income, factory, you may want to defer payments for financial and tax advisors. Then, whenever the annuity is issued.) compared to 50 percent had you con- a modest number of years as a hedge you are ready to proceed, we will assist you tributed cash. against what the future might bring. with the arrangements.