Former MAP Student and Staff Member, Kristi Edwards Explains the Ease of Setting Up a Planned Gift.
Prescott College Affiliation : Supporter
Program : MAP
"Planned Giving Does Not Require Great Wealth Nor Does It Need To Be Complicated"
My husband Dale and I established a charitable gift annuity and named two of our favorite organizations as charitable beneficiaries. A CGA is a versatile charitable instrument, which can provide income during life and help build Prescott College's endowment upon death.
A gift annuity creates a fixed, permanent stream of income for the donor and a beneficiary based on a standard rate agreed to at the beginning of the contract. The standard rate is based on the age of the income recipients and is generally derived from a table published by the American Council of Gift Annuities.
Tax benefits generated by the gift annuity may include an income tax deduction, avoidance of capital gain tax on the sale of an appreciated asset, and reduction of estate taxes. Income from the gift annuity is taxable, but a portion of the income may be income tax free (varies by asset).
The gift annuity is not a trust, but a contract between the donor and the nonprofit organization. At the death of the income recipients, the amount remaining from the gift annuity will be used to strengthen the nonprofits programs or endowment.
It was easy for us to establish, requiring a gift of only $25,000, and is administered through Prescott College's partner organization the Arizona Community Foundation. It was the perfect philanthropic vehicle to meet our philanthropic goals, allowing us to continue providing support to two of our favorite charitable organizations beyond our lifetimes.
"It is easy to establish."
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