You can enhance your income while supporting HIAS with a Charitable Gift Annuity.
Do you wish to make a gift to HIAS but cannot afford to give up the income from those assets? Considering a HIAS Charitable Gift Annuity (CGA) could be a perfect solution. A CGA is a vehicle which provides individuals with high fixed-rate lifetime payments, much of which may be paid tax-free, and an income tax charitable deduction.
Video: Learn more about Charitable Gift Annuities
A CGA combines a gift with an investment. A gift annuity agreement is a contract between you and HIAS under which HIAS is obligated to make fixed, lifetime payments to the annuitant(s). A CGA can benefit one or two individuals and can be established for a contribution of at least $10,000.00 in cash or marketable securities. This agreement is regulated by the State of New York and by other states and is subject to certain reserve investment requirements to protect annuitants.
Here are some interesting facts about charitable gift annuities:
- You are your age to your nearest birthday
- Two-life rates are always lower than the one-life rate for the younger annuitant
- Some of the capital gain from contributed stock will be taxed in installments in the annual annuity payment
- The annual annuity continues to be paid even if you outlive the life expectancy tables.
At the end of the term of the gift annuity, the remaining funds are paid to HIAS.
If the annuity is purchased with cash, the income distributed each year will be paid to the annuitant(s) as both ordinary and tax-exempt income. If this is considered together with the available income tax deduction, the actual yield will be significantly higher than the fixed annuity rate. When appreciated securities are used to make the gift, the annual income will also have a capital gain component apportioned annually.
You can calculate your own gift annuity here.
Are you a younger individual looking to reduce income taxes now while gaining fixed rate lifetime income to begin in the future?
Choosing to defer payments to a date in the future will generate a higher lifetime annuity rate. This is called a Deferred Gift Annuity (DGA), which is similar to a CGA except that income payments are deferred until a future date. Although the payments are deferred, there is a current income tax charitable deduction. The length of the deferral serves to raise the annuity rate considerably. You can target your annuity payments to begin when you need them, perhaps at the date you anticipate retirement.