what is the minimum gift amount necessary to fund a gift annuity?
- First gift annuity: $10,000
- Subsequent annuities: at least $5,000
how is my payment determined?
- The number of annuitants creating the annuity (one or two)
- The age of the annuitant(s) when the annuity is created. The American Council on Gift Annuities publishes the rates that most major charities – including the Foundation – follow.
how will my annuity payments be taxed?
Annuity payment taxation is based on the type of asset used to create the annuity:
- Gift of cash – the payment is partly tax-free and partly ordinary income for a period of time.
- Gifts of appreciated securities – the payment is partly tax-free, partly capital gain, and partly ordinary income for a period of time.
- NEW — Gift of a Qualified Charitable Distribution (QCD) from an IRA – the payment is entirely ordinary income. This option is only available for folks over age 70 1/2, and it can only be done one time for an amount up to $50,000 per individual. (The amount will be indexed for inflation starting in 2024.)
You will receive a Form 1099 from the Foundation each year for your tax reporting purposes.
how do i get started?
Step 1 – Review the Donor Info and other information on this page.
Step 2 – Contact the Foundation to discuss. Based on your age, gift type, and approximate gift amount, we will send you a preliminary detailed illustration. We will also include copies of the application and Donor Information (see below).
Step 3 – Complete the application and return to the Foundation.
Step 4 – The date we receive your gift is the starting date for the gift annuity. Using that date, we will prepare another detailed illustration and a formal gift annuity agreement for your final review and approval.
Step 5 – Return your signed agreement. We will send you fully signed copies for your records.
While we often often complete this process by mail, a Foundation representative is always available to meet with you in person at any step in the process that is most helpful to you.
get a brochure
This brochure summarizes the information on this page and can be ordered in bulk for use in your congregation on our Brochure Order page.