Charitable Gift Annuity

One way to provide for a favorite charity and your future is with a charitable gift annuity, which allows you to enjoy financial benefits while making a charitable gift to AACE.

People have used charitable gift annuities for years as a trustworthy way to practice biblical stewardship while receiving long-term financial benefits and preserving an income stream.

What is a Charitable Gift Annuity?

A charitable gift annuity is a financial agreement enabling you to transfer cash, real estate, or marketable securities to AACE in exchange for a current income tax deduction and fixed payment guaranteed to you and/or another person for life. Payments can begin immediately or can be deferred to a future date.

How Does it Work?

For a one-life annuity, AACE pays you a fixed dollar amount monthly, quarterly, or annually in exchange for your irrevocable gift. For a two-life annuity, we pay you and one other person jointly (e.g. your spouse, child, or parent) until you are gone; then we continue payments to your beneficiary.

Factors that determine the payments include the size of your gift, your age and/or the age of the beneficiary at the time of the gift, how soon payments begin, and whether the annuity is one or two life. If you are a senior citizen, the annuity rate may be 8 percent or higher.

Is it Tax-Free?

The gift annuity offsets income tax with an immediate tax deduction that can be carried forward for five years. In addition, a portion of each annuity payment is tax-free. The tax-free portion is greatest when the gift annuity is funded with cash.

If you transfer appreciated property to AACE, a portion of the capital gains tax is eliminated. Basically, part of the gain is allocated to the charitable gift and is not taxed; the rest is applied to the annuity and is taxed annually over your life. Because taxation on appreciated assets is minimized and spread out,using property as the charitable gift is quite advantageous.

Give, and it shall be given unto you; good measure, pressed down,
and shaken together, and running over. .. For with the same measure
that ye mete withal it shall be measured to you again. Luke 6:38

Contact us to learn more about charitable gift annuities.