Charitable Gift Annuity
Glenmary has an annuity program that many donors find beneficial and meaningful. With an annuity you can fulfill your charitable goals while also maintaining needed income.
A charitable gift annuity is a donation made to The Glenmary Home Missioners, cash or appreciated property, that can provide you with a secure source of fixed income (with rates based on your age) for the rest of your life. Donors 60 or older can set up an annuity with Glenmary. For a two-life annuity, the youngest donor must meet the minimum age requirement. The minimum amount for a Glenmary gift annuity is $5,000.00.
Benefits of a Charitable Gift Annuity
- You, or an annuitant you designate, can receive fixed payments for life.
- You can receive an income tax deduction for the charitable gift portion of the annuity.
- The fixed payments received may be partially tax-free.
- Your donation helps secure the ministry of The Glenmary Home Missioners in areas of rural America with no other Catholic presence.
Here is how it works.
- You transfer your donation of cash or property to The Glenmary Home Missioners.
- In return, Glenmary commits to pay you fixed payments for life. Payments are determined by your age. Glenmary follows the rates established by The American Council on Gift Annuities. A portion of each payment may be tax-free. The rate is set at the time of the contract and does not change.
- You will receive a charitable income tax deduction for the gift portion of the annuity.
Types of Annuities
- Immediate: With your transfer of cash or property, payments to one or two persons can begin this year. Payments may be made monthly, quarterly, semi-annually or annually.
- Deferred: If you are not ready to receive payments until a future date, you can establish the gift annuity now and have payments deferred at least thirteen months. Payments may be made monthly, quarterly, semi-annually or annually. Minimum age for a deferred annuity is 55.
- In Another’s Name: You can create a one or two-life gift annuity for others and possibly receive a charitable deduction for the gift annuity. Minimum age requirements apply. Gifts over the IRS gift limit may be subject to gift tax rules.
Legacy IRA Act
Beginning in 2023, donors over age 70 ½ are able to make a Qualified Charitable Distribution (QCD) in exchange for a charitable gift annuity. The following limitations apply:
- a donor can make this election in one tax year only,
- there is an aggregate limit in that year of $50,000, per taxpayer (this amount counts against the overall $100,000 annual limit per taxpayer applicable to QCDs for outright gifts made that same year),
- all gift annuity payments will be fully taxable as ordinary income,
- the annuitant(s) must be the donor and/or the donor’s spouse,
- annuity payments must begin no more than one year after the date of gift and must be at least 5% of the QCD amount,
- the QCD counts toward the donor’s required minimum distribution for the year,
- and there is no charitable deduction.
Note that some states have restrictions on annuities. Glenmary gift annuities are not issued in Alabama or Hawaii.
Annuities are subject to regulation by the State of California. Payments under this agreement, however, are not protected or otherwise guaranteed by any government agency or the California Life and Health Insurance Guarantee Association.
A charitable gift annuity is not regulated by the Oklahoma Insurance Department and is not protected by a guaranty association affiliated with the Oklahoma Insurance Department.
Charitable gift annuities are not regulated by and are not under the jurisdiction of the South Dakota Division of Insurance.
The first step in considering whether a charitable gift annuity is right for you is to consult with your financial or tax advisor. If you have any questions about a setting up an annuity with The Glenmary Home Missioners, please contact us at 513 874-8900 or use our contact form.
This information is not legal advice. A donor should seek the guidance of a qualified estate and/or tax professional to understand the consequences of a gift.