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
    909/596-7733 x2232

  • Legal Name: Casa Colina Foundation
    State of Business: California
    Tax ID Number: 95-3655255