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There are a variety of
ways you can support Agape’s ministry in addition to gifts of
money or things or of your time.
 Charitable
Gift Annuity
What is a
charitable gift annuity?
A charitable gift
annuity is a gift that gives back. It’s a way to assure an income
for yourself during your retirement years while making provision
to support the ministry of Agape Flights after your death. This is
the way it works:
Fixed
payments for life
You make an
irrevocable gift of cash, securities, or real estate (minimum
$10,000) in exchange for fixed payments for life. Your fixed
payments will not change regardless of whether interest rates rise
or fall. The remaining value, approximately half the original
value, benefits Agape Flights at your death.
Providing for
Others
A gift annuity will
make payments for up to two people for life.
You may wish to
include your spouse, a child with special needs, a parent, or a
special friend. Even if you name someone else to receive the
income, most of the tax benefits belong to you.
Higher Rate
of Return
Depending on your
age, and the age of a second annuitant, your annuity payments may
be considerably more than you are presently receiving.
Tax Benefits
You will receive a
current tax deduction in the year of your gift.
Part of your annual
payments may be a tax-free return of principal.
If your gift is
appreciated property, you may avoid capital gains taxes on the
gift portion of the annuity, with the remaining capital gains
spread over your life expectancy.
Flexibility
To supplement your
retirement or achieve other financial goals, you may choose:
- an annuity that
starts payments immediately
- an annuity that
delays payment until later
- annual,
semi-annual, or quarterly payments
- payments for one
or two persons’ lifetimes
How
does it work?
Agape Flights has
chosen The Manatee Community Foundation as our charitable gift
annuity service provider. They specialize in providing planned
giving and other financial services individuals and local
non-profit organizations.
Steps
to a Gift Annuity
Complete a simple
application from Agape’s non-profit annuity service provider, The
Manatee Community Foundation.
Transfer cash,
securities or real property to fund the annuity ($10,000 minimum )
to The Manatee Community Foundation.
The Manatee
Community Foundation will issue the annuity agreement and issue
your payments.
The
Manatee Community Foundation will
- receive cash or
sell property or securities and issue the gift annuity
- invest the
proceeds in a separate gift annuity account
- manage the
investments, audit the account, and make the payments to you for
life
- provide all IRS
required documents for tax reporting purposes
- transfer the
balance of the annuity after your death to a special fund for
the mission of Agape Flights
Your
Professional Advisors
Check with your
attorney, accountant, or financial advisor about how a charitable
gift annuity might fit into your total financial and estate
planning. Review these advantages:
- Fixed payments
for life
- More efficient
use of assets
- Attractive tax
benefits
- A legacy of
giving involving your family
We will work with
them, and you, to achieve your charitable objectives.
An
Example
John Smith, a
75-year-old supporter, supplements his living expenses with the
income from securities now worth $40,000 and earning 1.25%. He’d
like to support the mission of Agape Flights, but can’t give up
the income. His financial advisor suggested using a charitable
gift annuity to increase his income and make a gift to Agape
Flights.
Increased Income
Mr. Smith
transferred the securities to Christian Community Foundation in
exchange for a charitable gift annuity. The annuity payout rate
for his age, 75, is 7.3% – almost five times his present dividend
income from the securities!
Tax Benefits
He also received a
current tax deduction of $15,960 (which will lower his tax bill
for the next several years), avoided capital gains taxes on the
gift portion of the annuity, spread the remaining capital gains
throughout his life expectancy, and removed the asset from his
estate.
In addition to
these advantages, a portion of Mr. Smith’s income is a tax free
return of principal. When he passes away, the balance of his
account will be used to support the mission of Agape Flights.
Is
a charitable gift annuity right for me?
Would you like to
see how a basic charitable gift annuity created with cash would
benefit you?
Send us the
following information and we will provide preliminary gift annuity
calculations with complete information on payments you’ll receive
and tax benefits.
You are under no
obligation and this information is free.
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