Charitable Gift Annuity
How It Works
|ADLF has some of the highest Charitable Gift Annuity Rates|
Questions and Answers
A gift annuity contract becomes a legal financial obligation of ADLF and is backed up by all our assets.
Both have distinct advantages. A gift of cash may produce a larger tax-free portion of the annuity. A gift of stock may provide greater tax benefits because of capital gains savings. Both assets produce an equal annuity rate and charitable income tax deduction.
A charitable gift annuity can be set up for one or two lives. This is typically a husband and wife, but it could be two siblings, or two friends, or other relatives etc. Beneficiaries must be at least 60 at the time of the gift.
A commercial annuity, typically sold by banks and life insurance companies, will provide the owner with fixed or variable income based on commercial rates of return. These plans establish their annuity payments based on the assumption that all of the assets in the plan will be used up by the end of the income beneficiaries' lives.
A charitable gift annuity is part guaranteed annuity and part charitable contribution. The donor receives a partial income tax deduction based on the assumed value of the portion of the gift the charity will ultimately receive. A gift annuity establishes its payments on the assumption that there will be something left for the charity at the end of the contract. Often annuity rates for charitable gift annuities cannot compete with the commercial annuity rates of a commercial annuity because of the charitable component in the contracts. However, the combined benefits of the charitable deduction and the partially tax-free payments of a charitable gift annuity provide an effective rate of return that is often very attractive when compared with commercial annuities.
Yes, you can make a gift now for an annuity contract that will defer your payments to a future date that you decide, typically sometime in your retirement years when you will need the income. In this sense, a deferred payment gift annuity can serve as a type of tax-deferred retirement savings plan that will provide you with stable, fixed payments in the future.
The professionals at our Department of National Planned Giving, Legacy and Endowments will be happy to discuss your interests, concerns and financial options, and work personally with you and/or your legal and financial advisors to create a plan that meets your needs and supports the Anti-Defamation League Foundation.
For more information, please contact:
Director of National Planned Giving, Legacy and Endowments
Anti-Defamation League Foundation (ADLF)
605 Third Avenue
New York, NY 10158
This information is provided for educational purposes. The Anti-Defamation League Foundation and ADL are not financial, legal or tax advisors. Please contact your advisors regarding your financial, legal or tax needs.