The history of the charitable gift annuity is traced back to 1843 when a Boston merchant donated a gift of money to the American Bible Society in exchange for a flow of income. A gift annuity is straightforward; a contractual agreement is established between the EGCC Foundation and a donor. The contributor transfers assets to the EGCC Foundation in exchange for our promise to pay one or two annuitants payments for life.
Charitable Gift Annuities
A Charitable Gift Annuity allows you to make a gift to the EGCC Foundation while providing for your future financial security. A gift annuity makes it possible to transfer cash, real estate, or securities to EGCC. In exchange, you or a designated individual will receive fixed payments for life. You may wish to discuss this with a financial planner in our Advancement Office.
Making it happen…
- You transfer security cash, or other wealth to EGCC.
- EGCC pays you (or up to two annuitants) a fixed income for life.
- The principal amount passes to EGCC when the contract ends.
- You receive an immediate income tax deduction for a portion of your gift.
- Your annuity payments are guaranteed for life, backed by EGCC.
- Your annuity payments are treated as:
- Part of ordinary income,
- Part of capital gains income, and
- Part of tax-free income
- You have the satisfaction of making a gift benefiting you now and EGCC in the future.
Charitable Deferred Gift Annuity
The deferred charitable gift annuity works in a parallel manner to the standard Charitable Gift Annuity, with the exception that the deferred gift allows you to choose a date in the future when you would like your income payments to begin. The delay of your payment allows your annuity to mature in the EGCC Foundation, resulting in a higher percentage payout to you and a higher possible tax-deduction benefit.
Making it happen
- Donor transfers cash, securities, or other wealth to EGCC Foundation
- On a specified date in the future, EGCC Foundation begins to pay you or two annuitants a fixed payment for life.
- The principal amount passes to EGCC Foundation when the contract ends.
- You receive and immediate income tax deduction for a portion of your gift.
- Annuity payments can be postponed until you need them.
- With longer deferred payments, your effective rate will be higher and your principal grows tax-free.
- Your deferred gift benefits you now and EGCC Foundation later.