Charitable Gift Annuity Program

1. Charitable Gift Annuity Program Catholic Foundation Diocese of St.Petersburg

2. Introduction • A charitable gift annuity enables interested individuals to: • Support the ministry of the Catholic Church through an irrevocable gift • Receive fixed payments at a rate well above CDs & Money Markets • Obtain substantial tax savings

3. Give money or property to the Church High fixed payouts Payments made to donors for life Tax deductions Upon death remainder is given to Church

4. 73 Year Old Gift $20,000 Cost $10,000Gift Annuity Rate: 6.8%Charitable Deduction$9,102.80Total Annual Payment $1,360Tax-free Portion$395.08 Capital Gain is Reduced by $4,551.40 and is Reportable Over the Expected Lifetime of the Donor.

5. Comparison Tax CGA : Deduction of $9,102.80 CD/MM: Payment of $1500 - $2000 on Capital Gain Annual Payments CGA: $1,360 ($395.08 tax free) (6.8%) CD/MM: $960 ($0 tax free) (4.8%) **CGA rate fixed for life, CD/MM rate dependent on stock market

6. Charitable Gift Annuity Process • The donor expresses interest and is given an exact accounting of the annuity payments they will receive without obligation.

7. The Annuity is Finalized • A simple contract is signed between the Diocese and the individual(s) designating: • the beneficiary of the annuity • the exact rate of return and tax deductions from the gift.

8. Points to Remember Irrevocable Gift – the individual cannot get back the principal

9. Points to Remember • Annuity payments are above market and never decrease for the remainder of the annuitant’s life. • Tax deductions are given for the initial gift and for subsequent payments for a number of years. • The rate depends upon a person’s age and whether the annuity is for one or two lives.

10. Points to Remember • The rate is fixed according to national standards. • Payments are made quarterly, at the end of each quarter. • Upon the donor’s death the balance of the gift benefits the parish or ministry designated by the donor.