By Lisa Bennett
Fortunately, our tax system encourages you to make charitable gifts which can provide significant tax savings. You could receive income, estate- and gift-tax advantages, depending on how you structure your giving.
If you want to make a significant gift to Hospice Foundation, but need your investment income, a Charitable Gift Annuity (CGA) might work for you. A CGA provides a fixed-dollar payment on a quarterly basis to you and/or a loved one. The amount of the annuity payment and the income-tax advantages will depend on the age and number of people who will receive theincome. many annuitants find tht the actual income from a CGA is higher than they were receiving from highly appreciated, but low-yielding stocks.
It pays to stay up-to-date on changes in tax laws. For more information, articles available at the National Law Review (http://www.natlawreview.com/) and PGCalc (pgcalc.com) are good sources. You may also want to contact your estate planning attorney or accountant. I'm also happy to answer your questions, at no obligation of course. Please call me at (831) 333-9017 or lbennett@hospicegiving.org.
2 comments:
I would like to get charitable annuity. Can anyone please explain how does charitable annuity make their profit? I would appreciate if you can give me some websites.
Charitable Gift Annuities are direct contracts between a person (donor-annuitant) and a charitable organization that is licensed to provide annuity payments in return. The person gives money (cash, stock, or other liquid asset) to a charity. Then the charity pays the person an annuity (a fixed dollar amount) every year for the rest of that person’s life. The annuity amount depends on the life expectancy of the donor-annuitant, which is estimated by the government based on age and gender. These annuity payment are an obligation of the charity, which must have enough assets to assume this obligation. At the end of the person’s life, the charity keeps whatever amount remains.
For more information, you may check the website of the American Council on Gift Annuities at http://www.acga-web.org/index.php?option=com_content&view=article&id=47&Itemid=193.
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