Have you heard about the charitable gift annuity? When you donate at least $10,000 in cash or securities to WELS Foundation, you or a loved one will receive annuity payments for the rest of your life. Your payment rate is based on your age and a portion of your payment may even be tax-free. The most basic form is called an immediate payment gift annuity because it begins paying you income right away.
Donors like this gift vehicle because it allows them to give a thank offering to the Lord while guaranteeing them payments they can use for various needs. The payments come at the same time, and the amount never changes. There is also an immediate income tax charitable deduction for donors who itemize their tax returns.
Besides the immediate payment gift annuity, there are a couple of other setups. Gift annuities can have delayed start dates. You can establish one now and defer the payments for 10 years or however long you wish. The longer you delay payments, the higher the payments will be. This is because the money you contributed is invested prudently and compounds tax-free until the payments begin.
Another type of deferred gift annuity is called “flexible” because you can establish the annuity now and determine later when you want the payments to begin (for example, when you decide to retire or if a medical need arises).
If interested, learn more, then contact your local WELS Christian giving counselor for assistance in setting one up. He can also provide your with personalized examples of how the various gift annuities work in your situation.