GIVE AND RECEIVE WITH A CHARITABLE GIFT ANNUITY

Many of our friends who have been discouraged, or even hurt, by low earnings on their cash investments are discovering that they can help the Seventh-day Adventist Church and help themselves by the same means – a charitable gift annuity contract.

How a Gift Annuity Works

The concept of a gift annuity is simple. A person wishing to support the church, makes a gift of cash or marketable property to the Church. We reinvest the assets and guarantee to pay the donor a fixed income for life (and, if desired, for another beneficiary’s lifetime). Upon the death of the last beneficiary, the funds are available for our use.

The transaction is partly a charitable gift and partly a purchase of the income interest. The annuity rate is the dollar amount returned to you annually, a percentage of the value of your gift. And these rates are related to the ages of the recipients. 

What You Get Out of It

You have the benefit of a lifetime income for yourself and possibly another person, but there are numerous tax advantages, as well:

� The portion of the transaction that is considered a gift qualifies as a charitable deduction.

� Part of the annual income is considered a tax-free return of capital, excluding it from gross income until you reach your life expectancy.

� If you contribute appreciated securities, you’ll need to pay some capital gains taxes for the “sale” portion of the transaction, but it’s payable over your life expectancy – not in one year.

Additionally, there are possible savings in investment charges, probate attorney fees and settlement cost if you allow the Church to manage the assets.

You may use the Gift Legacy Presents Calculator to find out what you can expect to receive with a gift annuity now . . . or you may contact a Trust Services consultant who can provide graphical illustrations for you based on age and specific amounts for a gift annuity and deferred gift annuity.