Gift Annuity

An approach to charitable giving that has grown in popularity in recent years is a Gift Annuity.  In essence, a substantial gift (cash or other) is given to a charitable organization with the guarantee of a given percent returned annually to the donor as income for the balance of their, and/or surviving spouses, life.  The full amount of the gift is tax deductible up to the annual limits specified by the IRS.

As an example:  John Doe gives $100,000 to Southwest Regional Rehabilitation Center as a Gift Annuity.  Depending on John Doe's age (the older the higher the percentage return annually), he/she could get 5% (or more) of his/her contribution back annually.  At 5% it would be an annual income of $5,000.  This would go on for John Doe's remaining years and he could deduct up to 100% of the gift in the first year if it does not exceed 30% of his adjusted gross income.  If $100,000 does exceed 30% of adjusted gross income then the balance of the contribution could be deducted over future years.

Should you wish to pursue a Gift Annuity, you should contact your financial advisor and our Development Office at 269-965-3206 to work out the arrangements.

Southwest Regional Rehabilitation Center 393 E. Roosevelt Battle Creek, Michigan  49017 269.965.3206