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What is Gift Planning What to Give
Gifts that Provide Income Comparing the Benefits

Charitable Gift Annuities

Charitable gift annuities are extremely flexible. They can be designed to provide a fixed income for life for you and /or others you choose and need not require gifts of extraordinarily large amounts.

For example, you can make a gift through a charitable gift annuity agreement with a minimum of $10,000. Here’s how a United Way gift annuity works.

bulletYou transfer cash or other assets to United Way of Brazoria County to fund your gift annuity agreement. This can be handled conveniently by mail, if you wish.
bulletYou’ll receive generous payments annually (or more frequently if desired) that are fixed and will never vary in amount. The amount of your payment is a percentage of your gift determined by your age and other factors at the time your gift is funded.
bulletYou will be entitled to benefit from an immediate income tax deduction. And part of each annual payment you receive is tax-free for the period of time equal to your lie expectancy.
bulletIf desired, you can also choose to name another person (typically a spouse, parent or sibling) to receive payments with you, instead of you, or following your lifetime for the remainder of his or her life.
bulletYou make a significant and greatly appreciated gift to the United Way of Brazoria County Endowment Fund

Many persons find it convenient to arrange a new gift annuity agreement with the Endowment Fund each year. Since payment rates increase with age, each gift annuity generally brings larger annual payments.

When appreciated property, such as stock, is given for a gift annuity, capital gains tax is generally avoided at the time of the gift and a portion of the gain is spread over the annuitant’s life expectancy. The charitable deduction is typically based on the current value of the property, not its lower original cost. The use of appreciated, low-yielding assets to fund a gift annuity can thus be an excellent way to completely bypass capital gains tax at the time of your gift, enjoy a current income tax deduction, and gain the advantage of reporting a portion of each payment at lower, more favorable capital gains tax rates for a number of years.

 

 
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Last modified: June 25, 2008