A U.S.ENGLISH Foundation Gift Annuity is a contractual agreement between you and the U.S.ENGLISH Foundation that allows you to make a gift to U.S.ENGLISH Foundation while guaranteeing payments to you and/or another beneficiary.
You make a gift of at least $10,000 in value (cash, securities or real estate). In return you and/or another designated beneficiary will receive income for life, calculated based on a very attractive rate of return. The U.S.ENGLISH Foundation uses rates recommended by the American Council on Gift Annuities.
You can receive payments yourself, jointly with another person, or you can designate someone else (your parents, your children for example) to receive them. All annuitants must be at least 60 years old, and there can be no more than two per each gift annuity contract.
Stuart and Jane Donor long-time supporters of the U.S.ENGLISH, are both 75 years old. Mr. Donor has recently retired and the couple seeks to secure sufficient income for their retirement years, yet wants to continue supporting the U.S.ENGLISH. They both decide to take out a $10,000 U.S.ENGLISH Foundation Gift Annuity. The return (annuity payment) is computed at the current rate of 7.1 % as recommended by the American Council on Gift Annuities. As a result, they will receive annual payments of $ 710.00 for the rest of their lives.
Their income tax deduction in the year when they establish their gift annuity would be considerable. In addition, part of each annuity payment is considered tax-free income.
How is the annuity payment rate determined?
Annuity rates are determined based on the age of the annuitant(s) at the time when the annuity is established. U.S.ENGLISH Foundation follows rates recommended by the American Council on Gift Annuities.
Does that rate ever change?
No. Once it is determined, the gift annuity rate cannot change. Payments are fixed for the lifetime of the annuitant(s) and are unaffected by stock market fluctuations or economic trends.
Are annuity payments guaranteed? How?
Yes. According to the existing insurance laws the U.S.ENGLISH Foundation maintains a segregated fund to ensure all future payments to donors.
How often can one receive ones annuity payments?
Annuity payments can be paid out once, or twice a year.
How can one fund a gift annuity?
Cash, securities (or real estate, as permitted in the state of your residence can all be sued to fund this type of charitable gift. by state law.) If you use appreciated assets to fund a gift annuity, you can avoid capital gains tax on that part of the property that is considered a gift.
Is there a minimum contribution requirement?
Yes. To set up a gift annuity plan, the U.S.ENGLISH Foundation requires a minimum contribution of $ 10,000; there is no maximum.
Unfortunately, Gift Annuity program is not available for residents of every state. For further details contact our Director of Special Programs at 202.833.0100 or by email us at giving@usefoundation.org
Disclaimer: U.S.ENGLISH Foundation does not render legal, tax or other professional advisory services. Advice from an attorney and other professional advisors should be sought when considering charitable giving.
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