Charitable Gift Annuity
Individuals often seek ways to maximize returns on fixed income investments at low risk. Purchasing bonds, investing in bank certificates of deposit or in money market accounts, keeping cash in savings accounts, purchasing commercial annuities — these are ways that many individuals attempt to minimize risk while achieving conservative returns.
There is, perhaps, a better way.
In addition to the traditional ways of low risk investing, consider a B'nai B'rith charitable gift annuity.
Charitable Gift Annuity - Questions and Answers
Q. What is a B'nai B'rith charitable gift annuity?
A. It is a contract between you and the B'nai B'rith Foundation of the U.S. that provides a fixed-rate lifetime annuity for you (and another individual, if you wish). The B'nai B'rith charitable gift annuity agreement is governed by state laws in order to assure that the payments to annuitants are protected. In many states the laws require that the B'nai B'rith Foundation of the U.S. establish a segregated reserve fund and invest it in a specific way to further protect annuitants. The B'nai B'rith Foundation of the U.S. complies with these laws and guarantees each annuity payment.
Q. Why should I consider a B'nai B'rith Charitable Gift Annuity?
A. It is important to make several financial plans for retirement. If you are already at retirement age, you will certainly want to secure high returns at low risk. A B'nai B'rith charitable gift annuity can help you accomplish these goals. A B'nai B'rith charitable gift annuity also provides charitable funds, when your annuity ends, to help B'nai B'rith support and encourage a Jewish future. With the tax deduction that you are entitled to claim when you establish the charitable gift annuity, the high rate (based upon your age), and the portion of tax-free income that is paid to you in each annuity payment, a B'nai B'rith charitable gift annuity may prove to be a wise philanthropic and financial investment.
Q. How is the amount of the annuity determined?
A: The American Council on Gift Annuities publishes suggested tables that are used to determine the amount of the annuity, depending on the age of the beneficiary. These tables set fixed annuity rates. State laws also govern rates for charitable gift annuities.
Q. What are the tax implications of a B'nai B'rith charitable gift annuity?
A. If you itemize, you will be entitled to a current income tax charitable deduction for a portion of the total amount donated to purchase the annuity. In the case of a charitable gift annuity for a married couple, there will be no estate or gift taxes due. A portion of your annuity payment may be paid to you tax-free.
Q. How do I contract with the B'nai B'rith Foundation of the U.S. to have annuity payments made to me in the future, especially if I am under age 60?
A. You can establish a deferred charitable gift annuity and specify the date in the future when your annuity payments will commence. If you are under age 60, you may elect to defer the payment of your annuity until age 65 or later and obtain a higher fixed annuity rate for the remainder of your life. The rate for a current or deferred charitable gift annuity is fixed for life. The deferral generally allows for a higher annuity rate than an immediate charitable gift annuity.
Q. Should I consider using deferred gift annuities for my children to help them with their retirement?
A. Many individuals who want to make provisions for their children prefer to establish deferred charitable gift annuities to provide assured lifetime income for them in the future instead of giving them lump-sum legacies.
The following are sample rates for one-life and two-life current charitable gift annuities:
For more information including a no-obligation calculation of your B'nai B'rith charitable gift annuity, please contact the B'nai B'rith Foundation of the U.S. by phone (800-656-5561), by email firstname.lastname@example.org or by mail at B'nai B'rith Foundation of the U.S., 2020 K Street, N.W., Washington, D.C. 20006 or submit our request for information form.