Glenmary Charitable Gift Annuities

What Is An Annuity?
A Glenmary gift annuity is a legal contract between you and Glenmary. The annuity is guaranteed, dependable, safe—and an excellent way to ensure a steady income, especially if you may be beyond your peak earning years.

How Does It Work?
In exchange for your gift of cash or property, Glenmary will contractually guarantee to pay you an unchanging income amount for as long as you live.

How Much Income Is Paid?
Glenmary gift annuity rates are based on each annuitant’s age. Glenmary uses the annuity rates issued by the American Council on Gift Annuities, a national association of charities. (Rates are available upon request.) You may establish an annuity for as little as $2,000.

Is There a Charitable Deduction?
Your annuity is an irrevocable, nonassignable gift to Glenmary; therefore, you receive a charitable deduction on your income tax return for a portion of the gift for the year in which you establish the annuity. If you cannot use the entire deduction in one year, you can carry over the unused balance up to five additional years.

Are Payments Tax Free?
Annuity payments are partially tax free. In contrast, income received from banks and money markets is pure income and fully taxable. This is because annuity income is considered part return of capital and only part income. The part which is return of capital is tax free. An annuity payment consists of interest and principal according to an actuarially calculated formula. (If a donor lives beyond his or her actuarial life expectancy, the entire annuity payment will be taxed as ordinary income.)

Types of Annuities
Regardless of the type of annuity chosen below, payments can be scheduled to begin immediately or at a deferred date chosen by the donor. The longer you wait to begin payments, the higher the rate of income. Payments can be received monthly, quarterly, semiannually or annually.

Single-life
This type of annuity names only the donor as the beneficiary to receive annuity payments.

Joint-life
The donor and a second beneficiary jointly receive annuity income. The survivor will continue to receive the income until his/her death.

Two-lives
The donor beneficiary receives the income until his/her death, at which time the person named as second beneficiary begins to receive annuity payments until his/her death.

In Another’s Name
In this case the annuity is established as a gift for another person or persons who will receive the income according to one of the various options listed above. (If an annuity for another person is over $10,000, a gift tax may be incurred.)

For more information contact
Planned Giving Officer Susan A. Lambert,
or call 800-935-0975.

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