Charitable Gift Annuity—A Gift that Pays You!
A gift annuity may be an excellent way for you to provide a lifetime income for yourself and to make a significant gift to the Epilepsy Foundation. A charitable gift annuity is a contract between the donor and the Epilepsy Foundation. In return for a current contribution, made with either cash or securities, the Epilepsy Foundation agrees to pay a certain annuity to the donor or a beneficiary chosen by the donor.The donor may also choose to have the payments continue for the life of a spouse, or another loved one.
Payment rates and tax benefits are determined by the amount of the gift, the age of the beneficiaries and whether cash or securities are given. The payments are fixed, and guaranteed by the Epilepsy Foundation for the life/lives of the income recipients. A portion of the payments is free from federal income tax, and the donor is eligible for a charitable deduction in the year that the gift annuity is established.
When stock is used to fund a gift annuity, the donor would be eligible for a charitable deduction for the full fair market value of the stock (provided it has been held for at least 1 year). No capital gains tax is due at the time of the gift. However, a portion of the subsequent annuity payment is treated as a capital gains distribution and subject to tax.
Each personal financial situation is unique, Please be sure to talk to your financial advisor before making a life income gift or a gift of stock or securities.
View the current gift annuity rates.
How You Benefit
Gift annuities, charitable remainder trusts and other life income gifts can offer tremendous benefits. A gift such as this could allow you to:
- Eliminate part of your capital gains tax. If you contribute stock or other securities you have owned over one year and that have increased in value, you can reduce the capital gains tax you would owe if you simply sell the securities.
- Increase your charitable deduction. You will be able to claim a charitable deduction on your income tax return, if you have other itemized deductions.
To discover more about how you can benefit from a life income gift, please call the Epilepsy Foundation, Office of Planned Gifts at (301) 918-3774.