JCYC Planned Giving

Planned Giving

5. Gifts that pay you: Charitable Gift Annuities

The oldest and best known of charitable gifts that pay donors income for life is the charitable gift annuity described here. Charitable remainder trusts also pay donors income for life, give them an immediate income tax deduction and relief from capital gains tax. The charitable gift annuity is also guaranteed by the issuing charity. The payments are fixed and so completely predictable. The charitable gift annuity allows you to make a gift to a good cause while giving you a current income tax deduction and payments for life. In this way, some donors discover they can make a far more generous future gift to the Japanese Community Youth Council than they thought possible.

A gift annuity is simple to create. You fund your annuity with a gift of cash or stock. You are then paid a guaranteed fixed amount monthly, quarterly, semiannually or annually for life. You must be at least 65 when the payments begin and your annuity must be created with gifts having a total value of at least $10,000.

Your gift annuity can provide payments for one or two lives. Both plans generate an immediate charitable tax deduction and partially bypass capital gains tax. In addition, part of your payment will be tax-free and all of your gift will pass to the Japanese Community Youth Council free of estate tax.

Japanese Community Youth Council Gift Annuity Program
The Japanese Community Youth Council's gift annuity program appeals to those who prefer predictable payments to variable income. A the Japanese Community Youth Council gift annuity provides fixed guaranteed payments to donors along with the satisfaction of making a significant future gift to the agency. Annuity rates vary with age. The older you are, the higher your rate. Payments once establish remain the same for life.

The following are some current single-life annuity rates.

Age:      Rate:
65          6.0%
70          6.5%
75          7.1%
80          8.0%
85          9.5%

Here's an example: Mary Edwards, age 75, establishes a one-life gift annuity contract with $10,000. In exchange for her gift, the Japanese Community Youth Council pays her $710 annually for life. $460 of her $710 payment is tax-free for twelve years. She also receives a $4,496 charitable income tax deduction.

For an estimate of your rate and deduction, confidentially provided, call the Japanese Community Youth Council's planned giving specialist Phil Murphy at 415-457-7482 or email pgphil@earthlink.net.

Frequently asked questions about planned giving:

1. Can the Japanese Community Youth Council help me get my estate plan done?
2. How do I include the Japanese Community Youth Council in my will or living trust?
3. What's the big advantage in making the Japanese Community Youth Council a beneficiary of my retirement plan?
4. What kind of donors should consider a charitable remainder trust?
5. Gifts that pay you
6. Can you provide me with an estimate of my tax and income benefits?
7. How can I give my home and keep it, too?
8. Why does the Japanese Community Youth Council need planned gifts?
9. What should I do if I have already remembered the Japanese Community Youth Council in my estate plan?

Glossary of Terms