Gift Annuties
How It Works
With a gift annuity, you make a donation using cash, marketable securities, or other assets, and we, in turn, pay you a fixed amount for life. You’ll receive reliable, predictable payments for your lifetime (and the lifetime of a loved one, if you choose).
Your annuity payment is based on the payout rate, the gift amount, and the timing of your gift. You may choose immediate payments, or you may defer payment for one or more years, resulting in larger payments and potentially a higher income tax deduction.
Additionally, a significant portion of your annuity payment is typically tax-free. After your lifetime, Robyne’s Nest will get the full benefit of your generosity.
Additional Benefits
With this gift, you’ll also enjoy:
A partial income tax charitable deduction for your gift when you itemize.
Part of each payment being income tax-free throughout your estimated life expectancy.
Tip: You Have Funding Options
Give Appreciated Assets
Funding a gift annuity with appreciated assets, such as securities, will not only provide you with reliable payments for life and allow you to support our work, but it can offer financial benefits. You will receive a federal income tax charitable deduction (when you itemize) in the year the gift is made and eliminate part of the capital gains tax you would have paid if selling the securities. And if you have stocks that produce low-yield dividends, you may be able to increase your income.
Give From Your IRA
If you are 70½ or older, you can make a one-time election for a qualified charitable distribution of up to $53,000 (without being taxed) from your IRA to fund a gift annuity. Special rules apply.
Giving charitable gift annuities
Gift annuities are popular because they are so flexible, offering several options for giving.
Here are the most common options:
Immediate payment annuity
Once you make your donation**, Robyne’s Nest will immediately start making annual fixed-income payments to you.
An annuity that reduces your capital gains taxes
If you have stocks or mutual funds that you have held a year or longer, you can use them to fund your gift annuity. By doing so, you can avoid a significant portion of the capital gains taxes.
The remaining gain will be equally allocated over several years of your annuity payments and will not be taxed all at once.
Annuity with two beneficiaries
One of the great things about gift annuities is that they can be set up to benefit two people, making them a great retirement- and estate-planning tool for couples, whether or not the individuals are married.
If either beneficiary passes away, the surviving beneficiary will continue to receive the full annuity payment each year for life.
Deferred payment annuity
The payout rate of an annuity increases with age. If you don’t need immediate income, you can defer your first payment for a year or a number of years, you determine the best option for your income needs. When you defer payments, you will receive a higher payout rate.
*When funding a charitable gift annuity with funds from an IRA, you can avoid taxes by reducing your taxable income. Though there are limitations regarding gift amount, payments cannot be deferred, nor would you receive a charitable tax deduction. If you are interested in using funds from your IRA to set up a gift annuity, please reach out to us for further information.
**There is a $10,000 gift minimum. Beneficiaries must be 60 years of age to start receiving income.
