By Melanie Hildreth
Would you like to make a gift that helps secure individual liberty while providing a charitable tax deduction, earning fixed income for life and reducing your capital gains tax?
Consider establishing a charitable gift annuity with the Institute for Justice.
A charitable gift annuity is a simple contract that pays you a fixed, guaranteed, partially tax-free income stream in return for your irrevocable contribution of cash or appreciated securities. Because a portion of the contribution is a charitable gift, you also receive an immediate income tax deduction and, for gifts of appreciated stock, capital gains tax savings.
Payout rates for gift annuities depend on the ages of the income beneficiaries, with older individuals receiving higher payout rates than younger individuals. IJ offers immediate payment gift annuities to donors age 65 and older for a minimum $10,000 gift (see table).
Here is a simple example of how an immediate payment annuity works*:
John Q. Justice, age 75, has long-term appreciated securities that have doubled in value from his original purchase price of $10,000 to $20,000. He contributes the stock to IJ to establish a charitable gift annuity with a 5.8 percent payout rate. In return, he receives an upfront charitable deduction of $9,000 and a fixed, annual income of $1,160 for life. The reportable capital gain income is spread over 12.4 years of annuity payments, and a portion of each payment is also tax-free.
Establishing a gift annuity with IJ entitles you to membership in IJ’s Four Pillars Society. The Four Pillars Society is a group of more than 200 IJ donors who have informed us that IJ is in their will or other long-term financial plans. They are a special part of the IJ family, and the support they provide will help us fight for the Constitution for years to come. For more information about charitable gift annuities, the Four Pillars Society or other ways to leave a legacy of liberty, please contact me at email@example.com or 703-682-9320 ext. 222.
Melanie Hildreth is IJ’s director of development.