October 22, 2018
The Community Foundation of New Jersey has long offered charitable gift annuities to those who wish to make an up-front gift to a favorite nonprofit and then draw a lifetime income based on the value of the gift and annuitant rates.
It’s an effective and increasingly popular tax-planning tool that may be funded with appreciated securities so as to postpone the tax on capital gains. Now, with the American Council on Gift Annuities establishing new payout rates, they make even more financial sense for donors.
For example, a 60-year old who established a charitable gift annuity prior to July 2018 could expect a payout rate of 4.4%. Today, that rate is 4.7%. For a 70-year old, the rate increased from 5.1% to 5.6%. For an 80-year old, the rate increased from 6.8% to 7.3%.
Rather than charge a fee for facilitating charitable gift annuities, the Community Foundation retains 5% of the residual annuity at the time of the final payout to the designated charity.
More than forty nonprofit organizations participate in the Community Foundation’s charitable giftannuity program (with more added regularly), from Eva’s Village and the Montclair State University Foundation to the New Jersey Symphony Orchestra and the Rutgers Cancer Institute of New Jersey.
To create a charitable gift annuity in support of your favorite charity, contact Susan Soldivieri at 973-267-5533 or firstname.lastname@example.org.