The Charitable Gift Annuity
How Does it Work?
A charitable gift annuity, is a "life income arrangement." It
provides financial benefits to you as well as an opportunity to leave
a part of your legacy with Casa Colina. The annuity is a legal contract
in which Casa Colina agrees to pay you a guaranteed fixed dollar amount
during your lifetime in return for an irrevocable gift of cash and/or
securities. Upon your passing, or that of the annuity's last surviving
beneficiary, the remainder of the original gift passes to Casa Colina.
What Are Your Benefits?
A charitable gift annuity offers several benefits including those listed below:
a. Greater Income
When compared with most investments, our rates of return may generate higher
income for you and your family than you may be currently earning from
stocks and bonds.
b. Three Tax Advantages
Charitable Income Tax Deduction – A gift annuity is considered a charitable gift. You are therefore
eligible to receive an income tax deduction in the year the gift is made.
Its value reflects your age and expected lifetime income.
Tax-Free Income - A portion of your annuity income is considered a return of principal.
Therefore, the payment is partially tax-free. The balance is taxed at
either ordinary income or capital gains tax rates.
Reduced Capital Gains Tax - When funded with appreciated assets, capital gain on the appreciation
will only be realized when the annuity is received. You will therefore
owe a smaller amount of capital gains tax. Capital gain can also be amortized
over your actuarial life expectancy.
c. A Guaranteed Amount of Annual Income - For Life!
Once established, a gift annuity will pay the determined amount annually
to you (or specified beneficiaries) until your passing.
The information in this article is not considered as legal or tax advice.
The reader should consult with his or her tax accountant or legal counsel.
For more information or a personal illustration without obligation, contact:
Casa Colina Foundation
255 East Bonita Avenue
Pomona, CA 91767
Legal Name: Casa Colina Foundation
State of Business: California
Tax ID Number: 95-3655255