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. . . that you can have guaranteed income for
life and help further the Sigma Nu mission?
With the stock market and investment income
fluctuations wouldn't it be great to know that
you can lock in a guaranteed rate of income
for the remainder of your life? Think of it,
no matter what the market does, you will continue
to receive consistent payments. Now that is
what I call peace of mind!
Simply put, a charitable gift annuity is a contract
between you and the Educational Foundation.
In exchange for your gift of cash, property,
stocks, bonds or other assets, the Foundation
agrees to pay one or two people you name (called
annuitants) a fixed amount each year for life.
The amount that you receive each year depends
primarily on age; the older you are, the larger
the payment.
Age |
Rate |
|
Age |
Rate |
40 |
4.7% |
|
70 |
6.5% |
50 |
5.3% |
|
80 |
8.0% |
60 |
5.7% |
|
90 |
11.3% |
A
gift annuity is very similar to an annuity you
might purchase from an insurance company. What
makes the gift annuity unique, though, is that
you are also making a charitable donation to
an organization you care about, so you receive
a tax deduction for your generosity. You receive
benefits today -- income for life and a charitable
tax deduction -- and you help make a substantial
difference in Sigma Nu's future.
A few of the advantages of the charitable gift
annuity are outlined below.
Increased Income
It is possible to increase the amount of income
you annually receive from your investments. Let's
say that Brother Jones, who is 65, has $15,000
in a Certificate of Deposit, paying him 3.5% interest,
at his local bank. He would like to find a higher
rate of return, but doesn't want to invest in
the stock market because he wants the income to
be consistent.
Brother Jones qualifies for a 7.0% gift annuity
through the Educational Foundation. If he donates
the $15,000 to the Educational Foundation, he
will receive annual payments totaling $1,050,
almost doubling his income.
Charitable Deduction
When you establish a gift annuity, you also
qualify for a charitable tax deduction. Brother
Jones, for example, receives a tax deduction
of $5,965 for his gift to the Educational
Foundation. If he can't use the full amount of
that deduction in the first year, he can carry
it forward.
Tax-Free Income
As a rule of thumb, some 25% - 50% of the annual
income will be tax-free because the Internal Revenue
Service considers part of the income a return
of principal. In Brother Jones' case, $454
of his annual $1,050 will be free from income
tax for the first 20 years. After that, the
entire annuity payment is taxed as ordinary income.
Capital Gains
If you give appreciated property, such as stocks,
you will pay capital gains tax on only part of
the appreciation, and you are able to spread that
tax over the term of your annuity; it isn't all
paid at once. Though you can't completely eliminate
capital gains tax exposure with an annuity, the
advantage is that your gains are reported over
many years, not all at once.
Free e-brochure
To receive a free e-brochure that explains the
benefits of establishing a Charitable Gift Annuity,
click
here: then click on the second e-brochure
entitled, Charitable Gift Annuities: Invest
in Our Future.
A Few Final Thoughts
With a charitable gift annuity, you receive:
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Guaranteed
income for life |
|
Tax
Savings |
|
Satisfaction
of furthering the work of the Sigma Nu Educational
Foundation |
If
you are interested in learning more, we will be
pleased to provide you with a personalized, confidential
illustration of how a gift annuity can benefit
you. All information will be held in the strictest
confidence.
For further information about Sigma Nu's charitable
gift annuity program, please contact us at:
James
A. Owens
Sigma Nu Educational Foundation, Inc.
P.O. Box 1869 9 Lewis Street
Lexington, VA 24450
Toll free (888) 236-5323
foundation@sigmanu.org |
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