A charitable gift annuity is an attractive way for individuals aged 70 years and older to make a donation to the Arthritis Society while receiving a guaranteed income stream for life.
The benefits of charitable gift annuities:
an increase in your current after-tax spendable income
a fixed and guaranteed income stream, at a rate of return that is higher than that of GICs
no investment management required once the annuity is set up
a significant portion, if not all, of the income from a gift annuity is tax-free
a charitable tax receipt for the donation component for even more tax savings
Charitable Gift Annuities
A charitable gift annuity (or “Gift Plus Annuity) is an attractive way for individuals aged 70 years and older to make a donation to the Arthritis Society while receiving a guaranteed income stream for life.
The “Gift Plus Annuity” is an arrangement under which the donor transfers a certain sum to the charity subject to a Deed of Agreement which authorizes the charity, acting on the donor’s behalf and working through a life insurance agent, to arrange for a commercial annuity that would pay the amount stipulated by the agreement.
When to consider a Charitable Gift Annuity
A Charitable Gift Annuity may be a good investment to consider if:
- you’re 70 or older
- you’re looking for a worry-free investment
- you’d like to support the Arthritis Society now
- you’re in need of the income during your lifetime
- you’re looking for an alternative to GICs or other fixed income investments
- you’re willing to make a contribution of $10,000 or more
How it works
Charitable Gift Annuities are giving vehicles that offer the same income security as GICs, or other fixed income investments, but with better cash flow.
If you make an irrevocable gift to the Arthritis Society for a gift plus annuity, part of the contribution amount becomes an immediate gift to the Society for which you receive a tax receipt. The gift portion will be determined by you and the Society, but must be a minimum of 20%. The remaining funds are used by the Arthritis Society to purchase your annuity from a top-rated life insurance company.
You’ll receive a one-time Tax Receipt for the gift amount; and you will receive guaranteed income payments for life.
How you’ll benefit
- guaranteed income for life
- make a significant gift to the Arthritis Society
- receive a charitable tax receipt for the gift portion to the charity
- depending on your age, the annual income you receive from the annuity will be substantially, or entirely tax-free
- once your annuity is in place, the annuity rates are locked-in and guaranteed and do not fluctuate
- you’ll see your gift in action through the Arthritis Society during your lifetime
- Arthritis Society handles all of the set-up for you as stipulated by the agreement
The annual income you receive from the annuity will depend on variables such as your age and the current rates. The older you are at the time of the annuity, the better your return. You can arrange for a single-life or a joint-life annuity with your spouse, with a last-to-die clause. A Gift Plus Annuity requires a minimum contribution amount of $10,000 with a minimum gift portion of 20%.
To receive a personalized quote from the Arthritis Society with no obligation, please fill out the electronic quotation request form and a member of the planned giving team will get back to you.
It is recommended that you seek independent professional advice when preparing or considering making a planned gift such as a Charitable Gift Annuity.