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Did you know. . . 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.
Sample
Rates
| 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 significantly increase the amount of income you receive annually from your investments. Let's look at a scenario:
Brother Hopkins, age 75, has $15,000 in a Certificate of Deposit, paying him 3.5% interest, at his local bank. This provides him with $525 a year in earnings. He would like to find a higher rate of return, but doesn't want to invest in the stock market because he wants his income to be consistent.
Brother Hopkins qualifies for a 7.1% guaranteed rate of return via a charitable gift annuity through the Sigma Nu Educational Foundation. If he donates the $15,000 to the Educational Foundation, he will receive annual payments totaling $1,065, more than doubling his income.
Charitable Deduction
When you establish a gift annuity, you also qualify for a charitable tax deduction. Brother Hopkins, for example, received a tax deduction of $6,845.40 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 Hopkins' case, $657 of his annual $1,065 will be free from income tax for the first 12.4 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
this button 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 |
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Tax Savings |
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Satisfaction of furthering the work of the
Sigma Nu |
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 |
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