By: Laurie Valentine, COO & Trust Counsel
Would you like to provide support to your church or another favorite Baptist cause while benefiting from lifetime payments, management of assets and tax savings? If your answer is yes, a charitable gift annuity may be just what you are looking for.
A charitable gift annuity is a contract between you and the Kentucky Baptist Foundation under which you agree to make a gift of cash or appreciated stocks, bonds or mutual fund shares and, in exchange for your gift, the Kentucky Baptist Foundation agrees to pay you a fixed amount each year for your lifetime. The lifetime payments to you are backed by the general assets of the cause(s) that will ultimately benefit from your gift.
The annual payment to you depends upon the value of your gift and your age at the time you make the gift. The older you are the higher the payment rate. The payment amount is not dependent on what your gift earns.
Establishing a charitable gift annuity during your lifetime allows you to provide for your financial needs and those of your family, while at the same time assuring vital future support to the causes you designate to ultimately benefit from your gift.
Tax savings may be available from the charitable income tax deduction that is allowable and also from the fact that part of each payment you receive is tax-free. These benefits can make the cost of establishing a charitable gift annuity very reasonable.
Using appreciated stocks, bonds or mutual fund shares to establish a charitable gift annuity can also provide capital gains tax savings.
For more information, please call us at (502) 489-3533 or toll free in KY at 1-(866) 489-3533
The information in this article is provided as general information and is not intended as legal or tax advice. For advice and assistance in specific cases, you should seek the advice of an attorney or other professional adviser.