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