Charitable Gift Annuities

A Charitable Gift Annuity is a contract between a donor and National Catholic Community Foundation that provides a lifetime of annuity payments to the donor (and survivor or other beneficiary) in exchange for an irrevocable gift of cash, securities or other assets. Generally, the rate of return is enticing, and the payments are guaranteed for life. The Charitable Gift Annuity, as with any planned gift, can be used to create a donor-advised fund at NCCF to benefit a specific charity or charities.

Under this program, a donor makes a contribution of cash or securities to NCCF and, in return, receives an income guaranteed for his or her life (and another beneficiary, if desired). The donor also enjoys certain tax advantages associated with the contribution and the income derived from the annuity.

Upon the death of the annuitant(s), the remainder will be distributed as advised by the donor.

A charitable gift annuity could be right for you if:

• You want to provide income for yourself or others.
• You want the security of fixed, dependable payments for life.
• You want to minimize income taxes or capital gains taxes.
• You would like income that may be partially tax-free.
• You are considering a gift amount of $10,000 or more.
• You are at least 50 years old for a deferred or 60 for an immediate annuity.

1. Payments last for your lifetime, You cannot outlive your payments.
2. Payments are predictable.  Your payments will not be affected by investment performance or market conditions.  You will get the same amount each year.
3. Payments are secure.  They are backed by the general resources of NCCF, not just by the assets you donate.

Part of each payment typically will be tax-free for many years.  This tax-free portion makes the payments more valuable than an equal amount of fully taxable income.

The older you are when you make your gift, the greater the payment rate you will receive.  If you choose other people to receive the payments from your annuity, their ages at the time of your gift will determine their payment rate.  Our minimum age is 50 for a deferred annuity and 60 for an immediate annuity.

Cash currently held in a savings account, bank CD, or money-market fund makes an excellent funding asset.  Usually, a gift annuity will provide you with larger payments than any of these investments.

Securities, especially highly-appreciated securities that you have owned for one year or more, are also an excellent funding asset.  Giving them to us in exchange for a gift annuity will allow you to unlock their value to increase your cash flow and avoid substantial capital gains tax at the same time.