2014-06-27 / Columns

Your Owen County Community Foundation

Another Gift Annuity
by Mark Rogers
Executive Director

Why do some people with an Owen County Community Foundation charitable gift annuity obtain another one . . . and another? There are at least three reasons:

1. Satisfaction

Most donors ease into their first gift annuity with OCCF with a degree of concern. After all, this is a new arrangement for them and they wonder how well it will work. Will the payment amount be as promised? Will the checks arrive on time?

It doesn’t take long for any uneasiness to vanish. Donors discover they are having a positive experience. They learn they can count on OCCF to follow through. And this satisfaction draws them back for another annuity.

2. Connection

Having a life-income agreement with your OCCF involves an interdependence not experienced with normal annual giving. For one thing, the person is not only giving financial support, but receiving it. This enhanced sense of partnership encourages the feeling that “we are in this together.” Additional annuities deepen this connection even further.

3. Better Rates

Gift annuity rates are determined by the annuitant’s age. The older you are, the better rates you receive. For example, our current rate for a single-life gift annuity involving a 70-year-old person is 5.1 percent. The rate increases to 5.8 percent for a 75-year-old. At age 80 it is 6.8 percent and at 85 it is 7.5 percent. A 90-year-old (and older) will receive 9.0 percent. So for many annuitants, it makes sense to obtain additional annuities as they grow older.

And remember, gift annuities are very simple. As an example if you are 70 years old and create a charitable gift annuity of $10,000, you receive an annual income of $510 as long as you live. You earn from the annuity but your gift is more valuable because you receive an immediate charitable tax deduction. If you fund your annuity with appreciated property, you can also avoid capital gain tax on the increased value of the asset. A gift annuity is a simple contract that says if you give a gift to the OCCF, we’ll pay you an income for the rest of your life and then use the remaining gift for our local charity after you’re gone. You can even give us instructions as to how we should use your gift.

Gift annuities offer other advantages besides those mentioned above. To find out more and to receive a free sample payout illustration for your personal situation, give me a call at 829-1725, email me at mark@owencountycf.org, visit us online at www.owencountycf.org, or stop by and visit us in person at 201 West Morgan Street in Spencer (we’re on the second floor of the Owen County State Bank building).

Your Owen County Community Foundation is committed to helping our communities become better places to live, grow, and work. We value community involvement and charitable spirit.

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