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Charitable Gift Annuity Charitable brochure


									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
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
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:                                                   assets might not last as long as you do? If
Name    ___________________________________
                                                                   Website:                                                   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.
                                                                                  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,
                                                                                                  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
                                                   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.

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