Make a gift and receive a guaranteed income for life!

A Charitable Gift Annuity is for you if...

• Your planning objective is increased income.
• Your investment preference is the stability of fixed income payments.

Of all the gifts that pay you back, the gift annuity may be the simplest and most affordable. Here are some of the features that make the gift annuity a most popular life-income gift:

• You contribute your gift directly to Neighbors – not to a trust – and we agree to pay you a fixed amount for life. You know upfront how much you will receive in return for your gift.
• A charitable gift annuity is easy to create. The gift agreement is a simple contract between Neighbors and you. Your payments become one of our general obligations, backed by our corporate assets, not just the principal of your gift. We commit to making your payments.
• Gift annuities generally pay a slightly higher income rate than other life-income gifts.
• A charitable gift annuity may be funded with a gift of $10,000 or more. Gift annuities bring the benefits of a life-income gift into reach for many donors. (The minimum age of the annuitant for a Neighbors gift annuity is 60).
• You will receive a charitable income tax deduction when you create a gift annuity, based on the fair market value of the assets you contributed minus the present value of the life-income interest you retained.
• If you fund your charitable gift annuity with appreciated stocks, bonds and mutual funds, no upfront capital gains tax is payable. You can contribute appreciated but low-yielding assets and put the entire amount of your gift to work earning income for you. Only a portion of your capital gain will be reportable, and the tax will be spread out over your annuity payments during your life expectancy.
• Another tax benefit of a gift annuity is the treatment of your income payments. Part of each payment will be treated as the tax-free return of principal. This increases the effective yield of a gift annuity and is not available on other types of life-income gifts. (Note: The IRS provides that the capital gain and tax-free income benefits are in effect during your life expectancy – if you live longer, the entire annuity payment will be taxed to you as ordinary income.)
• Your gift annuity can make payments to a maximum of two people.
• After the death of the last annuitant, the balance remaining in your gift annuity will be available for the use you designated when you created your gift annuity.

To learn more contact Dan Russell, Neighbors, Inc. Development Director, at (651) 306.2148 or dan@neighborsmn.org.

This is not professional tax or legal advice. Donors must consult their tax and legal advisors regarding their specific situation.