Life Income Giving

Charitable Gift Annuity

The charitable gift annuity is one of the earliest and most popular forms of life income giving. It is also one of the easiest arrangements that can be made between a donor and the Capuchin Friars.

The Capuchin Friars have offered charitable gift annuities since 1924. Today there are more than 2,000 annuities with more than $24,000,000 in the annuity fund. The friars have never missed a payment to our annuitants. The funds are safely invested: 65% of the fund are in bonds; 25% in equity; and 10% in cash. Our investment advisors are with PNC Bank, Mellon Bank and Alliance-Bernstein.

In January of each year annuitants receive an IRS 1099 form from the friars indicating the ordinary income you received from the annuity during the preceding year.

Why should I consider a Gift Annuity with the Capuchin Franciscan Friars?

• Today's interest rates are indeed a mixed blessing.
• If you wish to borrow money, low interest rates are helpful.
• If you are depending on interest from your fixed income investments, low interest rates may be a problem.
• However, there is a solution!
• You can use your certificates of deposit and low yield stocks and bonds to benefit both yourself and the Capuchin-Franciscan friars.
• Here's how: Create a gift annuity and enjoy higher payments on the annuity for the rest of your life. At the same time you will be helping the Capuchins to continue our life and ministry.

What exactly is a Charitable Gift Annuity?

A gift annuity is a contract between you and the Capuchin Franciscan friars. You transfer cash (or other assets such as securities) to the Capuchins and are assured guaranteed regular payments for life.

What benefits do I receive from a Gift Annuity?

1. Guaranteed fixed payments for life
2. Higher payments depending on your age
3. A portion of each payment is tax-free
4. Your payments are guaranteed by the Capuchin friars
5. Inner satisfaction that you are supporting the life and and ministries of the Capuchin friars

How does a Gift Annuity Work?

The amount of each payment that you receive from a gift annuity is determined by your age when the annuity is initially funded.

There is no limit to the number of annuities you can set up. As your age increases, so does your rate of return. In fact, some individuals fund annuities annually in order to take advantage of the rate increases.

Once the payment is determined, it remains fixed for your lifetime. Payments can begin immediately or you can defer the payment schedule to a later date. You will receive an income tax deduction for the gift value when you fund the annuity and part of each payment will be tax free. Any unused deductions can be carried over an additional five tax years.

Can I use a Gift Annuity to provide for a loved one?

Yes! You have the option of contracting for a joint annuity and naming a secondary beneficiary so that the income is paid to both, and then to the survivor. You can also provide lifetime payments for your loved ones by setting up a gift annuity in your will. The annuity becomes effective at your death and fixed payments begin immediately.

What benefits do I receive from a Gift Annuity?

1. Guaranteed fixed payments for life
2. Higher payments depending on your age
3. A portion of each payment is tax-free
4. Your payments are guaranteed by the Capuchin friars
5. Inner satisfaction that you are supporting the life and and ministries of the Capuchin friars

What rates are offered for the Single Life Gift Annuity?

AGE	RATE%	AGE	RATE%
65	6.0	80	7.8
66	6.1	81	8.0
67	6.2	82	8.3
68	6.3	83	8.5
69	6.4	84	8.7
70	6.5	85	8.9
71	6.6	86	9.1
72	6.7	87	9.3
73	6.8	88	9.6
74	6.9	89	10.0
75	7.0	90	10.5
76	7.1	91+	11.0
77	7.3
78	7.4
79	7.5

Notes:

• Rates are fixed upon purchase. The above rates are subject to change, so contact us for the latest rates.
• Rates are for ages at the nearest birthday.
• For immediate gift annuities, these rates will result in a charitable deduction of more than 10% if the CMFR is 4.0% higher, whatever the payment frequency. If the CMFR is less than 4.0%, the deduction will be less than 10% when annuitants are below certain ages.
• For deferred gift annuities with longer deferral periods, the rates may not pass the 10% test when the CMFR is low.
• To avoid adverse tax consequences, the charity should reduce the gift annuity rate to whatever level is necessary to generate a charitable deduction in excess of 10%.

If you would like rates on Joint Gift Annuities, call Mr. Jerry Gaughan at (800) 224-0330.

Feel free to contact us using the information to the right or by completing the online form below.

Life Income Giving Query Form

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