By: Laurie Valentine
Would you like to provide future support to your church or another favorite Baptist cause while receiving guaranteed income for the rest of your life, 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 (or you and one other person) a fixed amount each year (“annuity”) for the rest of your life.
The annuity payment amount depends upon the value of what you give and your age at the time you make the gift. The older you are the higher the payment rate. The annuity payment amount is not dependent on what your gift earns.
At your death, whatever is left of your gift is distributed to the charitable cause or causes you have named to be used as you direct.
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. Those tax benefits can make the cost of making a charitable gift annuity gift very reasonable.
Using appreciated stocks, bonds or mutual fund shares to establish a charitable gift annuity can also provide capital gains tax savings.
Laurie Valentine is COO and Trust Counsel for the Kentucky Baptist Foundation, PO Box 436389, Louisville, KY 40253; (502) 489-3533 or 1-866-489-3533 (Toll-free, Kentucky Only); KYBaptistFoundation.org
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.