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Ky. Baptist Foundation: Gift annuity update

 

At the recent 33rd Conference on Gift Annuities, the American Council on Gift Annuities announced new suggested maximum gift annuity rates to take effect July 1. The new rates reflect an adjustment upward in most rates since the last set of suggested rates became effective in 2012.

A charitable gift annuity enables the donor to make a contribution that might otherwise come through their estate, while also retaining significant benefits today. When a donor establishes a gift annuity through an organization like the Kentucky Baptist Foundation, the property that funds the gift annuity is eventually used for the charitable ministry purpose that the donor designates, just as if the donor had left a bequest by will. But unlike a bequest, a gift annuity will provide the donor with regular payments and other benefits for as long as they live.

Under the terms of a gift annuity the donor can make a charitable gift with cash or other property. The donor or others they designate then receive fixed payments for life. The amount and frequency of the payments are determined at the time the gift annuity is funded. Also, the payments will never change and are designed to continue regardless of how long you live.

Because a portion of the gift annuity will be used for charitable purposes, the donor is entitled to an income tax deduction for the year of gift. Additionally, for a period of time, part of each payment may be received free of income tax or be taxed at capital gains tax rates that may be significantly lower than rates paid on other income.

You may wish to consider arranging a future charitable gift by establishing a gift annuity that results in immediate tax and other financial benefits. By doing so, you may be able to enjoy tax savings and increased income today while providing for a significant charitable gift to a favorite Baptist ministry.

To seek assistance in creating a charitable gift annuity that will ultimately provide support for Baptist causes and learn more about the recent gift annuity rate changes, contact the Kentucky Baptist Foundation at our toll-free number (866) 489-3533.

Richard Carnes is president of the Kentucky Baptist Foundation, P.O. Box 436389, Louisville, KY 40253; toll-free (866)489-3533; KYBaptistFoundation.org

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