Charitable Gift Annuity

You can increase your income, save taxes, and advance your legacy by establishing a Charitable Gift Annuity. A Charitable Gift Annuity is a simple contract between you and Young America’s Foundation; you make one gift upfront and receive an immediate income tax deduction, and Young America’s Foundation sends you fixed payments (a percent of your gift, based on your age) for life. At the end of your life, Young America’s Foundation receives the remainder of your investment as a charitable gift.

Charitable Gift Annuities are popular options for individuals concerned about medical and other late-life expenses. They are secure investments because payments are guaranteed by Young America’s Foundation asset base.

Establishing a Charitable Gift Annuity is a great way to save taxes. You receive an immediate charitable income tax deduction for the year you establish your annuity. You also reduce your capital gains taxes if you fund your annuity with appreciated securities.

The amount of your fixed annuity payment varies according to your age and the amount of your gift. Young America’s Foundation follows the schedule of suggested charitable gift annuity rates published by the American Council on Gift Annuities (ACGA). The ACGA publishes suggested rates annually per the advice of an actuarial firm. The ACGA last changed rates in 2003.

Charitable Gift Annuities make payments one of three ways: per a “single life” agreement (pay one person for their lifetime); a two lives in succession” agreement (pay first person and then second person, if second person survives first person); or a “joint and survivor” agreement (pay two people simultaneously while both are alive, with the survivor of the two receiving the full annuity amount for life).

Charitable Gift Annuities can be structured one of four ways:

An Immediate Gift Annuity makes payments on a monthly, quarterly, semi-annually, or annual basis immediately following the contribution to establish the annuity.
A Deferred Gift Annuity makes payments at a future time chosen by you when you establish the annuity. The payment start date must be more than one year after the date of your contribution. The older you are when payments start, the larger your payments will be.
A Flexible Annuity makes payments at a future time chosen by you after you establish the annuity. You have the flexibility to time your payment start date based on your retirement date or other considerations. The older you are when payments start, the larger your payments will be.
A Tuition Annuity is a single-life deferred payment gift annuity. It is often established by a parent or grandparent for a young child, with the donor deferring payments until the child is expected to enter college. Not all states permit this type of annuity.

Young America’s Foundation require a minimum gift of $5,000 and a minimum age of 55 to establish an Immediate Gift Annuity. If you are younger than 55 and planning for retirement, you may wish to consider a Deferred Gift Annuity or a Flexible Annuity.

Please call Kimberly Begg at 800-USA-1776 to request a free illustration of your benefits.