Benefit the Community and Receive Income with a Charitable Gift Annuity
As you plan for your future philanthropic giving, one option to consider is the creation of a charitable gift annuity. Charitable gift annuities (CGAs) are a popular choice because they provide future income to you and/or a loved one for life, as well as support for organizations that are meaningful to you.
Here’s how it works: In exchange for an irrevocable gift to Silicon Valley Community Foundation, SVCF pays a fixed dollar amount to you and/or a designated family member or friend for life. The amount you and/or your loved one receive is determined by the size of your gift and the age(s) of the person(s) receiving the payments. The income is guaranteed, regardless of market fluctuations. In addition to receiving a charitable deduction for a portion of the gift at the time it is established, a portion of your gift annuity income may also be income-tax-free.
A gift will be provided to SVCF at the end of the contract’s term; you also have the option of supporting one other charity in addition to SVCF. The table below gives a sample of current rates offered to annuitants:
|Age of annuitant||60||65||70||75||80||85||90|
|Current rate for one annuitant||4.4%||4.7%||5.1%||5.8%||6.8%||7.8%||9.0%|
*Rates subject to change. Rates are valid through June 30, 2014.
What are the advantages of charitable gift annuities?
- Payments are fixed and not affected by market turbulence.
- Payments are secure, backed by all of Silicon Valley Community Foundation's unencumbered assets.
- A portion of the initial gift may be tax-deductible.
- A portion of the payments may be tax-free.
- You may be able to increase your cash flow, especially if the CGA is funded with low-yielding assets.
- You might receive a capital gains tax advantage if the CGA is funded with long-term appreciated assets.
- The security of fixed payments can be directed to yourself or to a loved one, such as a parent, sibling or child.
- Best of all, the residuum will be used for the long-term benefit of our community.
For more details review the FAQs about charitable gift annuities.
To establish a charitable gift annuity with the community foundation or learn how a charitable gift annuity can benefit your clients or nonprofit organization, call 650.450.5444 or email firstname.lastname@example.org. To get started immediately, you can complete the appropriate documents located in the Getting Started section of our website.
The community foundation is not engaged in rendering legal, financial or tax advice. Please see the community foundation’s materials on fees, minimums, terms and conditions for more information. This webpage is a service to provide general information. Please consult your financial and legal advisor.