1. Skip to navigation
  2. Skip to content
  3. Skip to sidebar
Charitable Gift Annuity PDF Print E-mail

Charitable Gift AnnuityIn exchange for your gift of cash or marketable securities to the American Red Cross, we agree to pay you (and a survivor or other beneficiary) a fixed amount annually for your lifetime. The transfer is part gift and part purchase of an annuity. The rate of return is attractive and the payments are guaranteed for life.

The Red Cross uses the charitable gift annuity rates recommended by the American Council on Gift Annuities. The following are rates for a single-life charitable gift annuity:

Age
Rate
 Age Rate AgeRate
 Age RateAge
Rate
Age
 Rate
 55 5.5% 56 5.6% 57 5.6% 58 5.7% 59 5.7% 60 5.7%
 61 5.8% 62 5.9% 63 5.9% 64 6.0% 65 6.0% 66 6.1%
 67 6.2% 68 6.3%69
 6.4% 70 6.5% 71 6.6% 72 7.2%
 73 6.8% 74 6.9% 75 7.1% 76 7.2% 77 7.4% 78 7.6%
 79 7.8% 80 8.0% 81 8.3% 82 8.5% 83 8.8% 84 9.2%
 85 9.5% 86 9.9%87 10.2% 88 10.6% 89 11.0%90
 11.3%

For example, Miss Anderson, age 75, transfers $10,000 to the Red Cross for a gift annuity. She will receive a guaranteed annual income of $820 ($10,000 x 8.2% -- the annuity rate for her age).

The rates are different for an annuity for two lives. The rates for two lives are less than rates for one life because the period of payment may be longer. The following chart shows some sample rates based on two lives:

Age
Rate
Age
 RateAge
Rate
Age
 Rate
 65/60 5.5% 70/70 5.9% 80/75 6.6% 85/85 7.9%
 65/65 5.6% 75/70 6.1% 80/80 6.9% 90/85 8.4%
 70/65 5.7% 75/75 6.3% 85/80 7.3% 90/90 9.3%

For example, Mr. Edwards is 75 and his wife is 70. They transfer $20,000 to the American Red Cross for a gift annuity and receive $1,400 annually for life ($20,000 x 7.0% -- the annuity rate for their combined ages). The full guaranteed payments continue for the survivor's life.

If you wish, you may defer charitable gift annuity. You can make the gift now, and the Red Cross will pay you (and another beneficiary, if you wish) life income starting at any date you specify. This is a great option if you are concerned about retirement income. Also, you receive the income tax deduction in the year you make the gift. The amount you receive each year depends on the amount transferred, your age now, and your age when the payments are to start.

For example, Miss Baker, age 50, transfers $10,000 to the Red Cross for a deferred gift annuity with payments to start at age 65. Her rate of return will be 16.3 percent, and she will receive $1,630 per year for life ($10,000 x 16.3%).

For details on this program, please contact our Planned Giving Officer Kathleen Wright by sending an email or by calling 1-888-868-1992.


( 3 Votes )
 

Bookmark and Share