Posted on

Charitable Gift Annuities

Charitable Gift Annuities

If you would like to receive a tax deduction, increase your income, or are looking for a way to give. Then we invite you to consider a charitable gift annuity, a gift that pays you income for life.

What is a charitable gift annuity?

A charitable gift annuity is an agreement between you and Christian Aid Ministries Foundation.* In exchange for you transferring cash or property to them, the organization will pay you income for your life.

Because a portion of the annuity is a gift to ministry. Congress has passed laws allowing special tax benefits to all participants in gift annuities.

Advantages of a charitable gift annuity

  • You have the opportunity to make a significant charitable contribution.
  • You receive income tax benefits both now and in the future.
  • Because a part of the transfer is considered a gift, a current income tax deduction is allowed by the federal government for that portion.
  • A part of each payment you receive will be tax-free.
  • When appreciated property is transferred for a gift annuity, a portion of the capital gains tax will be avoided.
  • The income you receive will never be reduced for as long as you live, and for a joint contract, your survivor also receives income for life.
  • You have no management or investment worries or service fees to pay.
  • The transfer will not be subject to estate taxes or probate costs.
  • There are no health or age limitations.
  • Most of all, your gift supports ideals and programs of eternal worth that will long outlast your own life. You receive the benefit of knowing that as you are taking care of your own needs, you are also helping provide for the continued work of God’s kingdom.

Two types of gift annuity agreements

A current gift annuity is designed for individuals who are ready for retirement or are already in their retirement years. It provides lifetime income, beginning immediately upon the purchase of the gift annuity agreement. A single annuity will pay income to you for as long as you live.

A joint and survivor annuity will pay income jointly to two beneficiaries. At the death of the first beneficiary will continue to pay income to the surviving beneficiary for life.

A deferred gift annuity provides all the advantages of a current gift annuity. However it is designed for individuals who are planning for future retirement. Money is accumulated in the annuity contract until retirement (a designated age) at which time payments begin. The deferred annuity is also available as a single, joint and survivor, or survivorship agreement.

Taxation of a charitable gift annuity

You will receive a charitable contribution deduction on your federal income tax. This can be deducted by up to 60 percent of adjusted gross income in the year the annuity is established. Providing your annuity is funded with cash or property which has not appreciated in value. If the amount of the deduction exceeds this percentage, any “excess” can be carried forward for up to five years.

If your annuity is funded with property which has appreciated in value. Your contribution is deductible by up to 30 percent of adjusted gross income. It is possible to increase the 30 percent limitation to 60 percent (with a five-year carryover for any “excess”). To qualify for the increased percentage, you can choose to make a special election that limits the deduction value to the basis of the property.

You should consult your own advisers for the methods which would be most advantageous to you.

How to establish a charitable gift annuity.

We would be happy to help you determine how the annuity might fit in your overall plan of stewardship. If you will provide the information for a charitable gift annuity proposal on the enclosed response coupon, we will be happy to prepare a personalized presentation, which outlines the specific benefits and details of the charitable gift annuity for you. If you have questions, feel free to contact us.

© Lifestyle Giving, Inc. 2016 | Used by permission

*Annuities will be issued by either CAM Foundation or CAM depending on the state in which you live.

Posted on

Stewardship ‒ what is it?


Stewardship seems to be one of those topics bandied about frequently in Christian culture, but seldom with proper understanding. Having a right understanding of what stewardship is and how it applies to our lives will change the way we make decisions each day.

If we truly understand what it means to be a good steward, our lives will show it. Like all other Biblical principles, good stewardship brings tremendous blessings.

Let’s define the term “stewardship.”

One of the better definitions of stewardship I have found is this: (1) The office, duties, and obligations of a steward. (2) The conducting, supervising, or managing of something; especially the careful and responsible management of something entrusted to one’s care.

The term “management” implies that the steward plays an active role in the  decision-making and responsibilities of his office. This would indicate that God expects us to actively manage the resources He has given us.

So what are we stewards of?

Stewardship applies to everything God gives us. Time, money, gifts and abilities, families and relationships; all are God-given. The Scriptures hold a lot of good stewardship passages, but the parable of the talents clearly shows us what God expects regarding stewardship.

How should “stewardship living” affect our lives?

Our finances tend to be the key area that people refer to when speaking of stewardship. I think the reason is that money is often one of the most difficult things for people to give. We tend to find it easier to give of our energy, time, or abilities, but find it harder to give away money. This is probably why Christ used finances as material for teaching eternal truths more than any other topic.

One truth that can help us keep a proper focus is that we came into the world with nothing and we leave with nothing. We begin to look at all our possessions as merely being “on loan.” This will help us begin to see ourselves more as a “steward” rather than a “possessor.” When we think of our possessions in this manner, we soon realize that having possessions isn’t a good or bad thing, it just needs to be in the proper perspective.

Stewardship is mentioned in the Bible many times. The basic message is that God has entrusted us with things here on earth and it is our responsibility to use them for His glory.

—Steve Yoder, CAM Foundation staff member