Several years ago, Larry and Allison invested $30,000 in what they believed to be an attractive stock. It turned out to be a very wise decision, because the value of the stock increased to $100,000 a few years later. Though they were not in need of additional income at the time, the couple decided to cash in on this growth and began considering selling the stock.
Allison: We had had a good year and were looking for ways to maximize deductions and reduce what we owed in taxes. At the same time, we had been exploring the best way to make a gift to a ministry we both loved.
Larry: Allison and I were both 50 years old at the time, in good health and still working. And though we didn't really need extra current income, we were planning to retire at age 65, so we were always interested in smart retirement planning. Our goal was to be able to live comfortably and travel in our motorhome to visit friends and family.
Allison: I remember when we spoke with a gift planner. He explained the benefits of setting up a deferred gift annuity. Instead of selling, we could give our stock to the ministry we wanted to support and receive an immediate charitable tax deduction. Plus, when we turn 65, the deferred gift annuity would make annual retirement income payments to us for the rest of our lives.
Larry: We decided to set up the deferred gift annuity, and we experienced first-hand each of the benefits Allison mentioned: We received a charitable tax deduction and tax savings immediately. And now that we're retired, we receive income each year that helps make our retirement travel possible. On top of all of this, the deferred gift annuity makes a portion of the income payments we receive tax free.
Please note: The story, names and image above represent an example of the benefits of this type of estate-planning tool. They do not represent actual donors to GFA.
Since your deferred gift annuity benefits under federal rules may be different from the people in this illustration, you may want to click here to view an example of your benefits based on your age and preferences, or contact us to request a personalized CGA illustration.
GFA's Charitable Gift Annuities are administered by National Christian Foundation and can be funded with cash or securities with a minimum value of $10,000. Income payments from a CGA can be received quarterly or annually.