Charitable Gift Annuity

With a gift annuity you receive annuity payments for life in exchange for a gift.  You are also helping the Pasco Education Foundation.  Because gift annuity payments are guaranteed for life, you will never outlive your money.

How a Gift Annuity Works

You will receive a gift annuity contract in exchange for your gift.  You may use cash, certificates of deposit (CDs), stocks, bonds, or mutual funds to make your gift.  Your payout rate is based on your age.  The older you are, the higher your payout rate.  You will also receive an income tax deduction when you set up your gift annuity, and each annuity payment is partly tax-free. 

An Example

Mary Smith, age 83, has $100,000 in a Certificate of Deposit (CD) that is paying only 3%.  This provides her with annual income of $3,000 before taxes.  After taxes, she ends up with only $2,190.

Mary donates the $100,000 for an 8.0% Gift Annuity.  Her new gift annuity provides her with $8,000 a year, for the rest of her life.

Only $2,357 of that is taxable, and $5,643 is a tax-free return of principal, providing her with an after tax payment of $7,364. She also receives an income tax deduction of $46,959, saving her $12,679 in taxes.  Not only is her monthly cash flow much higher, she will receive it as long as she lives.

Learn How a Gift Annuity Can Work for You

Best of all, Mary is making an important contribution to the work of the Pasco Education Foundation.  These gift annuities can be set-up easily and quickly.  For an illustration of how a gift annuity will work for you, please give us a call.

Questions?  Please contact Allison Broihier at (813) 794-2705 or email abroihier@pascoeducationfoundation.org