Charitable Gift Annuities
Notice
In light of the current economic conditions, the Unitarian Universalist Association (UUA) is following the recommendation of the American Council on Gift Annuities (ACGA) to lower our annuity rates. The new rates will take effect February 1st, 2009.
The new recommended rates are pending actuarial review, but will be made available late January. It’s currently estimated that the maximum rate of 10.5% will be lowered to 9.5% at ages 90 and above. Additional rate changes may follow by July 1st 2009.
If you have been considering making a gift, now is the time to do so to lock in the current higher rate. Through the UUA’s Umbrella Giving Program, you can decide what congregations and Unitarian Universalist (UU) entities will be the ultimate beneficiaries of your gift.
Charitable Gift Annuities FAQ
A "charitable gift annuity" (CGA) is a way that you can give now, enjoy income for life, see tax savings, but most importantly, experience the joy and satisfaction of giving to the future of Unitarian Universalism.
What is a Charitable Gift Annuity?
When you set up a
CGA, you enter into a contractual arrangement with the Unitarian Universalist
Association of Congregations (UUA). A simple contract identifies the donor(s) and
states who will receive the annuity, when payments begin, when the contract
ends, and how you wish your gift to be used. As a donor, you make an irrevocable
gift of cash, stock, or other assets, and the UUA agrees to pay one or two
people a guaranteed, fixed annual income for the rest of their lives.
Ultimately, Unitarian Universalism directly benefits from your generosity.
How is the annuity amount determined?
Annuity rates are determined by the age(s) of the annuitant(s) and the amount paid
each year is a percentage of the amount given. The UUA uses rate tables prepared
by the American Council on Gift Annuities, a national non-profit organization.
Who may receive annuity payments?
One or two people may
be annuitants. The donor names the annuitant(s) when the gift contract is
prepared. Usually, the annuitant is also the donor.
What is the minimum gift amount?
The minimum gift
amount is $5,000.
When do annuity checks get mailed?
Quarterly. Checks
are mailed on the first of January, April, July, and October. Annuity gifts that
arrive late in a quarter will be held one full quarter before any payment. In
this case, the first check will include a pro-rated amount for the short
quarter.
Are the gift annuity payments guaranteed?
Yes. Gift annuities are guaranteed by the UUA and they are backed by all of the assets of the UUA. Assets received by the UUA for Gift Annuities are placed in a segregated annuity reserve which is managed by State Street Global Advisors, in a conservative and disciplined manner. Where possible, these investments are screened according to the Socially Responsible Investment Policies adopted by the UUA Board of Trustees. If the UUA should ever fail financially, individuals entitled to receive annuities will qualify as general creditors of the UUA.
Are annuity payments taxable?
For a period of years,
part of the annuity payment is tax free, and part is taxable ordinary income.
Gifts of appreciated assets will see some of the capital gain excused, the rest
is payable over the course of the annuity.
May I make a non-cash gift?
Yes, common stocks, mutual
funds, and other marketable securities are acceptable donations to establish a
gift annuity. Gifts of real estate are allowed in some states and are subject to
approval by the UUA Gift Council.
Will I get a charitable income tax deduction?
Yes. You
may claim a charitable income tax deduction for a percentage of your gift. U.S. Treasury
tables set the deduction, based on the annuitant's age, the annuity rate, and
date of the gift.
When do annuity payments begin?
Donors chose when
payments begin, either immediately or deferred for more than a year. Immediate
annuities start payments within a year of the gift date. Deferred annuities
delay payments but still generate a current income tax deduction. The annuity
rate and tax deduction for a deferred annuity will be higher than what you will
enjoy from an immediate annuity.
What will my gift support?
Charitable gift annuities
support the work of the Unitarian Universalist Association and/or your own
congregation or any other UUA-affiliated organization. Unrestricted gifts are
always welcome, as are gifts designated for specific purposes. For instance,
your gift could help fund loans to congregations for land acquisition or new
construction, or help to support the development of life-cycle religious
education curricula, or promote the mission of Faith in Action, or add to the
permanent endowment, income used only for general operations.
- Calculate Your Annuity Rate
- View an Interactive Presentation on Charitable Gift Annuities
- Request an Enrollment Package
For more information please contact the Legacy Gifts Office at giftplans @ uua.org or toll free at (888) 792-5885.
For more information contact giftplans @ uua.org.
Last updated on Tuesday, January 6, 2009.
