Five Ways a Gift Annuity Can Benefit You
A Charitable Gift Annuity is a contract where in return for a transfer of cash or securities, a charity agrees to pay a fixed amount of money to one or two individuals for their lifetime. To obtain a personalized illustration, download and fill out our Charitable Gift Annuity Information Request Form by clicking here.
Have you considered the benefits of obtaining a charitable gift annuity with New Jersey Audubon Society? Here are five points to ponder:
- Attractive Rates. Mr. and Mrs. Smith, in their mid-60s, are receiving a modest income from their Certificate of Deposit. When the CD matures in two months, they plan to obtain a New Jersey Audubon Society gift annuity and start receiving an annual return of 4.9%. Gift annuity rates are very attractive and many folks in their retirement years will be pleased when they compare their low investment rates with the current annuity rates offered by New Jersey Audubon Society. We follow the gift annuity rates approved by the American Council on Gift Annuities.
- Tax-Free Payments. Part of each annuity payment is tax-free. The tax-free portion of the annuity payment is considered “return of principal” and continues through the annuitant’s estimated life expectancy.
- Income Tax Deduction. Because a charitable gift annuity is partly a gift and partly an investment in an annuity contract, the donor who itemizes is entitled to an income tax deduction for the gift portion of his or her annuity amount. The deduction is available for the tax year when the gift annuity is established. If it cannot be used entirely, the donor has up to five more years to carry forward the unused amount. The tax advantages with the charitable deduction make the effective rate of the gift annuity even higher than the rate used to establish the annuity.
- Fixed, Regular Payments. It is nice to be able to count on a specific amount of payment no matter what happens to the financial markets. Your annuity payments will remain the same every year. And since gift annuity payments are backed by the full assets of New Jersey Audubon Society, you have assurance that your check will be in the mail every payment date for the rest of your life.
- Personal Satisfaction. Perhaps the greatest benefit of an New Jersey Audubon Society gift annuity is the personal fulfillment you receive by helping NJ Audubon as well as yourself. Your gift annuity assists a worthy cause that makes a difference in the lives of others. Your gift helps us to continue to preserve wildlife and at-risk natural habitats for future generations.
There are additional reasons for obtaining a gift annuity with New Jersey Audubon Society. Some like the idea of reducing the size of their estate, thus lowering potential estate taxes. Others like the ease and simplicity of establishing a gift annuity. People with highly appreciated stock can also benefit from a gift annuity. They particularly like the partial bypass of capital gains they receive.
To find out more about charitable gift annuities and to obtain a personalized illustration, contact New Jersey Audubon Society’s headquarters office at 908-204-8998