|
FAQ Charitable Gift Annuities |
-
What is a Charitable Gift Annuity?
A charitable gift annuity is a simple contract between you and Desert Southwest United Methodist Foundation (DSUMF).
In exchange for your irrevocable gift of cash, securities, or other assets, DSUMF agrees to pay one or two annuitants you name a fixed sum each year for life. The payments are guaranteed by the general resources of DSUMF, the Annual Conference, and the
The older an annuitant is at the time of the gift, the greater the fixed income DSUMF can agree to pay.
In most cases, part of each payment is tax-free, increasing each payment's after-tax value. If you give appreciated property you will pay capital gains tax on only part of the appreciation. In addition, if you name yourself as an annuitant, the capital gains tax will be spread out over many years rather than be due in one lump sum in the year of your gift.
Payments are usually made in annual, semiannual, or quarterly installments, but in special circumstances, DSUMF will make annuity distributions on a monthly basis. -
What are the benefits of a Charitable Gift Annuity?
BENEFITS INCLUDE:
•When you make a Charitable Gift Annuity, you will qualify for a federal income tax deduction for a portion of the gift. Note that deductions for gifts of long-term appreciated property will be limited to 30% of your adjusted gross income and gifts of cash and non-appreciated property will be limited to 50% of your adjusted gross income. If you qualify for more deductions than you can take in the year of the gift, then you may take unused deductions of either kind over the next five years, subject to the same 30% or 50% limitation.
•The annuitants you name will receive a fixed, annual income for life, guaranteed by the general resources of DSUMF, the Desert Southwest Annual Conference, and the
•If you fund the annuity with an appreciated asset, you will incur tax on only part of the gain. If you name yourself as an annuitant, this tax will be spread out over many years.
•Your estate may enjoy reduced probate costs and estate taxes because this is an irrevocable gift which is permanently removed from your estate.
•You will provide generous support of your church foundation as well as the DSUMF.