International Fellowship of Christians and Jews

A donor may want to make a gift to charity of cash or an appreciated asset (including stocks, bonds or other assets that have increased in value) but needs regular payments to supplement retirement income during the remaining years of his life. In many situations, appreciated assets do not generate meaningful income and would be subject to taxes if sold and used for retirement expenses. In other cases, a donor may have a low yielding Certificate of Deposit.

A Charitable Gift Annuity is created when assets are given to a charity in exchange for a guaranteed, fixed payment to the donor or other beneficiaries for life. This payment begins at the time that the gift is made to the charity. Charitable Gift Annuities can be established for gifts as little as $5,000 for donors who have reached 59 years of age or older. Appreciated assets may be used to fund an annuity provided that the donor has held the assets for more than one year.

Payment rates for Charitable Gift Annuities are based on the age of the annuitant (the person receiving the income). The majority of charities, including The Fellowship, use gift tables established by the American Council on Gift Annuities to determine payments. Charitable Gift Annuities may offer rates better than many available elsewhere, and allow the donor to reduce or eliminate capital gains taxes on the appreciated assets used to fund the annuity. Use our online planning tools to see if a Charitable Gift Annuity may be right for you>>

The Benefits

• A potential increase in retirement income
• Quarterly payments guaranteed for life, partially tax free
• Elimination of capital gains taxes on appreciated assets that fund a Charitable Gift Annuity
• Immediate tax deduction and potential estate tax savings
• A generous gift to The Fellowship for the support of Israel and Jewish people in need around the world

Download or request a free copy of The Fellowship’s Planned Giving Ideas and Options Guide>>

The Underwood’s Charitable Gift Annuity Story

Mr. and Mrs. Underwood, both 77, want to support the work of The Fellowship, but also need to increase their retirement income. The Underwoods have appreciated stock valued at $25,000. They have held this stock, which pays only modest dividends, for 5 years. After receiving a proposal from The Fellowship and having discussions with their advisor, they make a stock gift in exchange for a two-life Charitable Gift Annuity. They instructed their broker to make a direct transfer of the stock to The Fellowship, deferring and reducing the payment of capital gains taxes. This plan increased their retirement income for life and will help The Fellowship fulfill the prophetic return of Jews to Israel On Wings of Eagles.