A gift annuity is a simple written agreement that allows you to make a gift of cash and/or securities to the Foundation and receive payments for life and a charitable deduction.
- Your gift can be cash or appreciated publicly traded securities. Minimum gift is $10,000.
- A portion of the payments is typically tax-free
- If you make a gift of appreciated securities, you will recognize only a portion of the capital gain over a period of time.
- The income payments from gift annuities can begin immediately or be deferred. The minimum age for a gift annuity is typically 50, but it can be lower for deferred gift annuities with payments beginning after age 50.
- The payment you receive is fixed and the amount is based on life expectancy and other factors.
- Payments are backed by the full faith and credit of the Foundation.
Through the Gift Calculator, you can learn more about potential income and charitable deductions available through income-producing gifts.
To discuss your options, please contact an LCF Gift Planner via email or by calling 800-365-4172.
The Donor
An 81-year-old Minnesota woman wanted to increase her income and benefit charity.
Her Gift
- She made a gift of $10,000 to create a gift annuity.
- She received a charitable deduction of $4,993.70.*
- She receives $730/year for life (7.3%), of which $568 of each annual payment is tax-free for 8.8 years.
At her death, the gift will benefit her church’s endowment fund at the Foundation.
*Payout rates, charitable deductions and other benefits vary based on a number of factors.
The Donor
*Assumes single gift of $10,000, 5% grant distributions, 8.3% investment return, 1% administration fee and no additional gifts