American Community Fund
Charitable Gift Annuity Program
American Community Fund partners with the National Gift Annuity Foundation (NGAF) to provide a planned giving program by which you can increase your income with safety, decrease your taxes, and support American Community Fund. National Gift Annuity Foundation administers the charitable gift annuities established to benefit American Community Fund.
Donors contract with the NGAF and designate American Community Fund as the grantee after the life of the donor just the same as if American Community Fund were administering the payments and annual tax documents for you.
The minimum CGA contract is $20,000 for cash or $500,000 for real estate, and the minimum age to receive annuity payments is 55.
What is an example of the benefits?
Once a couple establishes a CGA with the NGAF, here is an illustration of how it might benefit them:
A married couple, ages 75 and 72 and in the 24% tax bracket, make a $80,000 CGA gift of cash from their investment portfolio or other financial accounts.
The couple receives an immediate charitable tax deduction of $37,193, with no Adjusted Gross Income limitation, plus a 5.1% annuity (partially tax-free) at approximately $4,080 per year
Payments for life, guaranteed by the National Gift Annuity Foundation, which has over $150 million in net assets.
The final residuum balance passes to NGAF and is then granted to American Community Fund.
A single individual may also establish a CGA, and an illustration for one person is below:
An individual age 72 in the 22% tax bracket makes a $100,000 GCA gift of cash.
The individual receives an immediate charitable tax deduction of $51,885, with no Adjusted Gross Income limitation, plus a 5.5 % annuity.
The annuity payout would be $5,500 per year and would remain partially tax-free for about 14.5 years; after 14.5 years, the entire annuity will be taxed as ordinary income.
The charitable gift annuity is a simple agreement between you and National Gift Annuity Foundation. In exchange for a gift of cash, real estate, securities or other appreciated assets, you receive fixed payments for life. When you establish a charitable gift annuity, you will receive fixed quarterly, semi-annual, or annual payments for life at an attractive payout rate.
You receive an immediate, partial charitable income tax deduction. And if you donate appreciated real estate or securities (stocks or mutual funds) to fund your gift annuity, you will enjoy capital gains tax savings as well.
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, American Community Fund will get the remaining balance of your gift.
For gifts of cash, real estate or appreciated securities, you receive an immediate partial income tax deduction for this tax year and a lifetime stream of income for you or someone you designate. This way of giving will also help you save on capital gains taxes if funded with appreciated real estate or securities.
How It Works
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You transfer real estate, cash or securities to National Gift Annuity Foundation The suggested minimum gift requirement is $20,000.
You transfer real estate, cash or securities to National Gift Annuity Foundation The suggested minimum gift requirement is $20,000.•National Gift Annuity Foundation pays you, yourself and a spouse, or any two beneficiaries you name, fixed income for life.
National Gift Annuity Foundation pays you, yourself and a spouse, or any two beneficiaries you name, fixed income for life.•Beneficiaries are recommended to be at least 65 years of age at the time of the gift.
Beneficiaries are recommended to be at least 65 years of age at the time of the gift.•The remaining balance will be applied to fulfill the mission of American Community Fund.
The remaining balance will be applied to fulfill the mission of American Community Fund.Benefits
•Receive dependable, fixed income for life in return for your gift.
Receive dependable, fixed income for life in return for your gift.•In many cases, receive payments at a rate higher than the interest you are currently receiving from stocks, CDs, or savings accounts.
In many cases, receive payments at a rate higher than the interest you are currently receiving from stocks, CDs, or savings accounts.•Receive an immediate income tax deduction for a significant portion of your gift.
Receive an immediate income tax deduction for a significant portion of your gift.•A portion of your annuity payments will be tax-free.
A portion of your annuity payments will be tax-free.•Are you a younger donor? Consider a deferred gift 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.
Are you a younger donor? Consider a deferred gift 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.Charitable Gift Annuity: The Details
Is this gift right for you?
•You want to make a significant gift and receive lifetime payments in return.
You want to make a significant gift and receive lifetime payments in return.•You want to maximize the payments you receive from your planned gift — and you want to lower your income tax on those payments.
You want to maximize the payments you receive from your planned gift — and you want to lower your income tax on those payments.•You want the security of payment amounts that won't fluctuate during your lifetime.
You want the security of payment amounts that won't fluctuate during your lifetime. •You also appreciate the safety of your payments being a general financial obligation of the National Gift Annuity Foundation.
You also appreciate the safety of your payments being a general financial obligation of the National Gift Annuity Foundation.•You like the idea of supplemental income you can't outlive.
You like the idea of supplemental income you can't outlive. A deferred gift annuity is for you if…
•You are in high earnings years, looking for both income tax savings now and an additional source of revenue when you retire.
You are in high earnings years, looking for both income tax savings now and an additional source of revenue when you retire. Of all the gifts that pay you back, the charitable gift annuity is the simplest, most affordable, and most popular. You make a gift to the National Gift Annuity Foundation and in return, it agrees to make fixed payments to you for life. The gift agreement is a simple contract between you and the National Gift Annuity Foundation. Your payments become one of its general obligations, fully backed by all its assets, and will not fluctuate.
When the contract ends, the balance of the gift annuity is applied to the programs of American Community Fund.
Gift annuities offer attractive tax benefits:
1.You will receive a federal income tax deduction for a portion of your gift, based on the full value of the assets you contribute minus the present value of the life-income interest you retain.
You will receive a federal income tax deduction for a portion of your gift, based on the full value of the assets you contribute minus the present value of the life-income interest you retain.2.If you fund your charitable gift annuity with appreciated real estate or securities, naming yourself as beneficiary, no capital gains tax is due on the transfer. Only a portion of your capital gain will be reportable, and the tax will be spread over your annuity payments.
If you fund your charitable gift annuity with appreciated real estate or securities, naming yourself as beneficiary, no capital gains tax is due on the transfer. Only a portion of your capital gain will be reportable, and the tax will be spread over your annuity payments.3.Part of each annuity payment will be treated as tax-free return of your principal. This effectively increases the yield from your annuity over your life expectancy.
Part of each annuity payment will be treated as tax-free return of your principal. This effectively increases the yield from your annuity over your life expectancy.Most Common Uses
•Supplement Income in Retirement — If you have already retired and want to increase the yield from low dividend stocks or other interest-bearing assets, a charitable gift annuity can provide you with guaranteed fixed income for life at a rate higher than most dividends, CDs or savings accounts. When the annuity matures, you support our mission.
Supplement Income in Retirement — If you have already retired and want to increase the yield from low dividend stocks or other interest-bearing assets, a charitable gift annuity can provide you with guaranteed fixed income for life at a rate higher than most dividends, CDs or savings accounts. When the annuity matures, you support our mission.•Income to Aging Parents — Many members of the "sandwich" generation face the difficult task of caring for children at the same time they are providing help and support for aging parents. Frequently these parents do not want to take money from their children, causing them financial hardship. A charitable gift annuity with us can provide payments or direct deposit to your aging parent or parents now and a gift to us later, all while providing you with both peace of mind and an income tax deduction.
Income to Aging Parents — Many members of the "sandwich" generation face the difficult task of caring for children at the same time they are providing help and support for aging parents. Frequently these parents do not want to take money from their children, causing them financial hardship. A charitable gift annuity with us can provide payments or direct deposit to your aging parent or parents now and a gift to us later, all while providing you with both peace of mind and an income tax deduction.Planning points
•A charitable gift annuity at the National Gift Annuity Foundation can be created with a gift of $20,000 or more.
A charitable gift annuity at the National Gift Annuity Foundation can be created with a gift of $20,000 or more.•Gift annuities bring the benefits of a life-income gift into reach for many donors.
Gift annuities bring the benefits of a life-income gift into reach for many donors.•Your gift annuity can make payments to a maximum of two people.
Your gift annuity can make payments to a maximum of two people.•Gift annuity rates are partly determined by the age of the beneficiary.
Gift annuity rates are partly determined by the age of the beneficiary.•Younger donors may find planning benefits in a deferred gift annuity.
Younger donors may find planning benefits in a deferred gift annuity.•Do you want to control the start date of payments? Consider a flexible gift annuity.
Do you want to control the start date of payments? Consider a flexible gift annuity.Please contact us so that we can assist you through every step of the process.
