Charitable Gift Annuities
A Gift That Provides Guaranteed Income For Life
Charitable gift annuities are extremely popular. They work much like an insurance annuity. By making a gift, donors receive a guaranteed lifetime payment from the annuity, regardless of the market conditions. In addition, the donor receives a charitable deduction for the market value of the asset, based upon their age. The minimum gift amount for an annuity is $10,000, and the minimum age is 65.
Example: Mary White, who is 88, had a large amount of stock that was producing a small annual dividend each year. The stock was originally acquired for $40,000, but now has a value of nearly $300,000. Selling it would have created a large capital gain. Mary donated the $300,000 to establish a charitable gift annuity. She avoids capital gains taxes and receives annual income of 10% or $30,000 per year—far more than she previously earned. In addition, she receives a substantial tax deduction.
How to Proceed
About the examples: The examples are only illustrations of the benefits. In all cases, you should consult your adviser. The Maryland SPCA can provide detailed profiles tailored to your circumstances at no cost or obligation. Email or call David Drake, Director of Development, The Maryland SPCA at 410-235-8826, ext. 132 for more information.
The Maryland SPCA's Account Information
Bank: PNC Bank
Account Number: 21-46-001-5878953
DTC: 2616
Attn: Linda Derkach
