CHARITABLE GIFT ANNUITIESCHARITABLE GIFT ANNUITIES

What is a Charitable Gift Annuity?

A charitable gift annuity allows a donor to make a charitable gift and receive payments for life backed by the LCF.

After the gift annuitant's life, the remainder of the gift annuity will go to the donor's choice of funds at the Foundation, benefiting charities or areas of charitable work selected by the donor.

The minimum gift is $10,000, and income payments can begin immediately or be deferred. 

Target Audience

Immediate Gift Annuity Deferred Gift Annuity
  • Older clients (70+)
  • Clients who are fiscally conservative
  • Clients seeking additional income
  • Clients who already have a gift annuity
  • Clients who wish to give cash or appreciated stock
  • Clients with stock who are seeking ongoing income for longterm care or wealth replacement insurance premiums.
  • Younger clients (50+)
  • Clients who want a charitable tax-deduction now but have no need for additional income until retirement age
  • People who want to establish a supplemental retirement plan
  • Clients who wish to give cash or appreciated stock
  • Clients who have maxed out qualified retirement plan contributions, but still need additional retirement income.


Tax and Financial Benefits of Creating a Gift Annuity

  • The annuitant receives fixed payments for life (backed by on the full faith and credit of the LCF).
  • The donor receives a charitable income tax deduction in the year of the gift.
  • For gifts of cash, the annual deduction limit is 50% of the donor’s AGI.
  • For gifts of long-term appreciated securities, the annual deduction limit is 30% of the donor’s AGI.
  • Unused charitable deductions may be carried over an additional 5 years.
  • The donor bypasses a portion of capital gains on gifts of appreciated securities; any capital gain is recognized over the lifetime of the annuitant.
  • A portion of each gift annuity payment is usually tax-free.

More about Gift Annuities

Gift annuity payout rate. The LCF uses the American Council on Gift Annuities rate table to determine the payout rate on a gift annuity contract. Rates are based on the age of the annuitants and gender is irrelevant. A donor may request a lower payout rate and in return receive a higher charitable income tax deduction.


How to Establish a Gift Annuity at the LCF

  1. Request a personalized illustration for your client using our request form.
  2. The Foundation sends you an illustration packet to review with your client.
  3. If your client wishes to proceed and establish a gift annuity, complete and return the Gift Annuity Application, IRS Form W-9 and Fund Workbook included in the illustration packet.
    • If the client is giving cash, you may send the check at this time.
    • If the client wishes to give stock, include copies of either the stock certificates or the most recent brokerage statement. LCF will contact you with specific instructions on how to transfer the stock.

Benefits to you, the Professional Advisor

LCF will support you with a full range of charitable products and services, and you'll be compensated for your efforts by Thrivent or American Funds. (details)

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