Charitable Gift Annuities
A charitable gift annuity allows you to make a significant gift to Adventure Place while at the same time receiving a guaranteed, pre – determined annuity payment – possibly for life. A charitable gift annuity may be attractive to you if you are a conservative investor 65 years of age or older because they represent safe investments that offer significantly higher returns than you could receive through Guaranteed Investment Certificates (GICs).
Simply put, an annuity consists of two parts: a gift to Adventure Place for which you will receive a tax receipt and a guaranteed stream of income for you and your surviving partner, either for life or a specified number of years. Here’s how they work: A minimum of $10,000 is transferred to Adventure Place which is divided into two parts. At least 25% is counted as an immediate donation to Adventure Place, for which you receive a charitable tax receipt. The remainder is used to purchase an annuity from a top-rated insurance company providing a guaranteed income.
A charitable gift annuity provides both an immediate and potential future donation to Adventure Place. While you are investing to secure the quality of your life, you are also improving the quality of life for countless others. Your gift will leave a mark by ensuring that all children have the right to healthy development and the achievement of their full potential.
Charitable Gift Plus Annuity
How you can give:
A Charitable Gift Plus Annuity is a financially prudent way of ensuring that all children have the right to healthy development and the achievement of their full potential while taking care of your own financial needs. In return for making a gift to Adventure Place, you receive a guaranteed income for life.
To establish a Charitable Gift Plus Annuity with Adventure Place, you provide us with an irrevocable gift of cash or securities. A portion of your donation, approximately 25%, is immediately put toward programs and services that improve lives of children with special needs. You can either designate the programs that you want to support, or ask Adventure Place to use your gift where the need is greatest at that time.
The majority of the capital is used to establish an annuity for you. The annuity can also be established as a joint plan, in which case you receive payments during your lifetime and then, after your death, your spouse receives the same payments for the rest of his or her life.
In situations where a joint plan is preferred, the interest rate received is often slightly lower.
Besides competitive payments at a rate which often exceeds that of other investments, including GICs, you can receive a number of tax benefits and save your estate probate fees it might otherwise have to pay.
Your investment and income are guaranteed through a leading insurance company.
A Charitable Gift Plus Annuity may be established for as little as $10,000, and is most effective if you are 65 years of age or older.
Benefits to you:
- You receive a fixed income for life, often at a higher rate of interest than other investments, including GICs
- Depending on your age, a portion or all of the income is tax-free
- You’ll enjoy a safe investment that is guaranteed by a major insurance company
- A portion of the gift is used immediately to help the work of Adventure Place, providing an immediate tax receipt for you
- A gift of annuity frees you from investment and management worries
- The full amount of the gift will not be subject to probate taxes as part of your estate
EXAMPLE*: A 75-year-old man who invests $25,000 in a Gift Plus Annuity will receive an income of $2,125 per year for life of which $1,651.13 will be tax-free. In addition, $6,250 of the initial capital will be an immediate gift to Adventure Place. He will receive a donation receipt for the $6,250, which can be used to offset other taxes.
EXAMPLE*: An older married couple (he is 78, she is 77) decides to invest $10,000 in a Gift Plus Annuity. At a rate of return of just over 7 per cent, they would receive an income of $701 per year for life. Of that, $596 would be tax-free. They would also receive a tax receipt for $2,000.
Not least of all, they would have the gratification of knowing that a portion of their gift had gone to help children with special needs.
For more information, please call:
Debbie Modrovsky, Business Director
416-744-7650, ext. 224 | firstname.lastname@example.org