a gift that pays you income for life

The Missouri United Methodist Foundation can help you create a gift annuity that will ultimately benefit any United Methodist church, organization or affiliated institution. In January of 2024, the American Council on Gift Annuities recommended new, HIGHER payout rates – the highest in 16 years – so it’s a great time to create your gift annuity! In addition, new federal legislation allows eligible folks (age 70 1/2 +) to use IRA funds to create a gift annuity.

what are the benefits of creating a gift annuity?

  • The personal satisfaction that your gift will nurture future generations in the Christian faith
  • Fixed payments for life that are guaranteed by your Missouri United Methodist Foundation
  • Tax deduction (must itemize)
  • Partially tax-free payout
  • Capital gains tax savings on gifts of appreciated stock or real property
  • Note: A gift annuity funded from a one-time QCD from an IRA is not tax-deductible and all payments are taxable as ordinary income.

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:

  1. Gift of cash – the payment is partly tax-free and partly ordinary income for a period of time.
  2. Gifts of appreciated securities – the payment is partly tax-free, partly capital gain, and partly ordinary income for a period of time.
  3. 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.

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ask David

Contact David Atkins for answers to your questions.