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 $5,000.

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 because annuity income is considered part return of capital and only part income. The return of capital income is tax-free. In contrast, income received from banks and money markets is pure income and fully taxable. An annuity payment consists of interest and principal according to an actuarially calculated formula. (If the annuitant lives beyond his or her actuarial life expectancy, the entire annuity payment will be taxed as ordinary income.)

Types of Annuities

Immediate

Payments to one or two persons can be made monthly, quarterly, semiannually and annually.

 

Deferred

Payments to one or two persons deferred at least thirteen months can be made monthly, quarterly, semiannually and annually.

 

In Another's Name

You can create a one or two-life gift annuity for others. You may receive a charitable deduction for the gift annuity. Current gifts over $13,000 may be subject to gift tax rules.

 

Testamentary

In some instances, you may direct your will or trust to create a testamentary charitable gift annuity for one of more individuals with estate assets. The legal document creates the gift instructions for an annuity agreement dated at the time the society receives the asset.

For more information contact Susan Lambert, Glenmary's planned giving officer, at 800.935.0975.