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The United Way
of Martin County Foundation
Charitable Gift Annuity
The United Way of Martin County Foundation
is your partner to establish a charitable gift annuity program
for your organization.
We offer a turn-key operation with an
internationally recognized CGA program specifically designed for
not-for-profits who want to offer their donors a CGA program but
who do not want the administration expense or fiscal liability
of the set-up and ongoing management.
A Charitable Gift Annuity is a planning
tool that has many benefits to the organization and the donor:
1.
Enhanced income for the donor
- Generate more income that current
investments
2.
Guaranteed life- time income for the donor (rates as of 02/2009)
- Age 75 - 6.3 percent return
- Age 80 - 7.1 percent return
3. Tax
Benefits for the Donor
Immediate charitable tax deduction
4.
Personal Satisfaction for the Donor
Helping people in need
5.
Organization is beneficiary of the remainder
This is an irrevocable gift to the
nonprofit organization
Example:
Step One: Donor age 80 gives $20,000 irrevocable gift to
United Way or their favorite organization. Gift can be cash or
appreciated stock.
Step Two: United Way Worldwide through State Street
Global Bank issues contract to donor for life-time payments
based on age and amount of gift.
Step Three: Donor receives charitable income tax deduction.
Step Four: Donor receives annual payment for life and
statements from United Way Worldwide.
Step Five: Remainder principal of gift goes to United
Way Endowment or donor’s favorite charity after donor lifetime.
Summary of benefits: (illustration only)
Assumptions:
Gift amount $20,000
Age 80
Payment rate 7.1 percent
Beneficiary United Way Endowment
Benefits:
Annual payment to donor $1,420.00
Tax-free: $1,407.96
Ordinary income: $372.04
(After 9.4 years, the entire annuity become ordinary income)
Charitable Deduction $10,150.00
*Payment rate is dependent on age of donor. Contact the United
Way for a specific calculation based on age and amount of gift.
CGA contracts start at $10,000 and can go to $1 million.
Call (772) 283-4800, ext. 226 for questions or more information.
The united way foundation is available to assist all agency
members to set up their own charitable gift annuity program
using the resources and fiscal backing of the CGA program of
United Way Worldwide.
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