North Georgia United Methodist - Multiplying Financial Resources for Mission and Ministry

Planned Giving Articles

The Charitable Gift Annuity - In Giving You Receive

It is said that in the act of giving we receive more than we thought imaginable. Most of us experience this reality through the eyes of a child, the gratitude of a life changed, or through the vision that is inherent in the spirit of philanthropy. The Charitable Gift Annuity is a planning tool that recognizes that the rewards of giving begin with the desire to make a gift.

To create a Charitable Gift Annuity, a donor transfers an asset such as appreciated stock to the Georgia United Methodist Foundation. In turn, the Foundation agrees to make fixed annual payments to the donor for life. View sample Charitable Gift Annuity rates, which are based on the donor’s age.

Charitable Gift Annuities offer several benefits. Not only is there an immediate charitable income tax deduction, it is also possible to bypass a portion of the capital gains tax as well. In addition, the Charitable Gift Annuity may significantly increase your cash flow as evidenced in the following example.

John Smith, a 77-year-old retiree, owns stock valued at $200,000. The stock pays 3% or $6,000 in dividends annually. If he transfers the stock and establishes a Charitable Gift Annuity valued at 7%, it will increase his cash flow by $8,000 each year.  Plus, a portion of the fixed annual payment may be tax free.

Please contact the Foundation at 770.449.6726 or 877.220.5664 if you would like to receive specific information on how a Charitable Gift Annuity or other planned giving instruments may help you meet your financial objectives.