Charitable Gift Annuity

October 11, 2010

In a Gift Annuity, a gift of cash or its equivalent is given to a charity.  In return, the charity promises to pay the donor a guaranteed annual amount for life.

A gift annuity may be taken out for one person (single life) or for 2 people (joint life).  We also offer deferred annuities (payments to begin at a later date).

A bi-national mass at the border fence separating the United States and Mexico.

What questions should I ask if I am considering a Gift Annuity?

  • Do I want a higher rate of return than I receive from my certificates of deposit?
  • Do I want to make a meaningful gift while at the same time provide an assured income for myself and/or for my spouse as long as either of us shall live, regardless of our health?
  • Do I want to receive tax breaks on my gift and on any income I receive from the annuity?

If you answered “yes” to any of the above, please read on.

Your Investment is Safe

Your gift is placed in a managed fund separate from other Columban investments.  Currently, the Columban Fathers administer a Gift Annuity portfolio of over $8,500,000.  The income from this fund, together with a portion of the principal, helps make the payments.  Gift Annuities are regulated by the U.S. Government and must conform to laws enacted in a number of states.  Furthermore, payments are backed by the entire assets of the Columban Fathers.

Payment Rates

In general, the older you are, the higher the percentage return.  Rates are determined in such a way that when the actuarial life span of the gift annuitant is reached, there will still be funds left for use by the charity.

Variable Factors

The tax benefits for each annuitant may vary for a number of reasons.  Among these are the following:

1.      Your date of birth

2.      The birth date of any other person who will receive annuity payments

3.      When you want the payments to begin

4.      The frequency of the payments*

5.      If funded by securities or mutual funds:

a.   Their cost basis

b.  Their present fair market value and holding period