Charitable Gift Annuities
Giving is a religious act. Each of us knows someone somewhere whose life was changed by the courage and compassion of Unitarian Universalism. Many whose lives were touched never knew that the spirit of Unitarian Universalism was at work in their midst. Many have never heard of Unitarian Universalism! We give of ourselves, our time, our energy, our ideas, even our lives—not for recognition, but because it is the right thing to do.
For all the good we Unitarian Universalists do, only we know the value of our religious heritage. Only we love this free faith enough to give it a future. And when we make a gift to Unitarian Universalism, we receive a gift in return: the joy and deep satisfaction of giving to something we cherish. 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?
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.
Annuity rates are determined by the age(s) of the annuitant(s). The annuitant(s)
and the annuity amount never change.
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. Your
gift annuity is guaranteed by the UUA and backed by its assets, which for the
fiscal year ending June 30, 2000, total $206,193,928.
How will my gift be invested?
The UUA holds all
charitable annuity contributions in charitable trust fund accounts, at State
Street Global Advisors in Boston, Mass. Gifts remain in the funds until the gift
contract ends. The asset allocation is 65% fixed income, 32% common stocks, and
the rest in cash. All UUA investments are screened to exclude tobacco and
weapons industries. On December 31, 2000, the UUA Segregated Annuity Reserve and
the UUA California Annuity Reserve accounts had a combined fair market value of
$3,698,000.
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. Ask the UUA Office of Charitable Gift
and Estate Planning for more information about how your gift plans might be
taxed.
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 Vice President of Finance.
Will I get a charitable income tax deduction?
Yes. You
may claim a charitable income tax deduction for a percentage of your gift. For
instance, if you are 70, your annuity rate is 7.5% and you are eligible for a
charitable deduction is approximately 35% of your contribution. US Treasury
tables set the deduction, based on the annuitant's age, the annuity rate, and
date of the gift. Ask the UUA Office of Legacy Gifts to
estimate your deduction.
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.
How will a CGA work for me?
To request a gift
illustration based on your personal situation, please fill out the Confidential
Reply Form and it will be sent to the UUA Office of Legacy Gifts.
For more information contact giftplans @ uua.org.
Last updated on Wednesday, October 3, 2007.
