GIFT ANNUITIES MADE EASY

Transcription

1 GIFT ANNUITIES MADE EASY

2 NO GREATER GIFT Provide for your future and the Earth s through a gift annuity I f you ve been looking for a way to deepen your support for Earthjustice, you might want to consider what the The Wall Street Journal recently said about establishing a charitable gift annuity: It is a good way for a donor to get an upfront tax deduction, to help the charity you care about and get a predictable stream of income for the rest of your life.

3 1. HOW DOES IT WORK? Establishing an Earthjustice charitable gift annuity is easy as 1, 2, 3: 1. You make an irrevocable donation of at least $10,000 to Earthjustice; 2. You receive annual fixed payments at an attractive payment rate for as long as you live, and a charitable deduction; 3. You enjoy the satisfaction of making a gift that benefits you now and Earthjustice later. 2. IS A GIFT ANNUITY RIGHT FOR YOU? So many Earthjustice supporters have indicated an interest in charitable gift annuities that we created a short quiz to help good friends like you easily determine if a gift annuity might be right for you. 1. Are you looking for additional income? 2. Would you be interested in a new way to diversify your investments? 3. Do you have stocks, mutual funds or other appreciated asset you want to liquidate, but you are concerned about capital gains taxes you may owe? 4. Are you disappointed by the low payment rate on your CDs? 5. Are fluctuations in your dividend income a concern? 6. Do you want to create a secure source of income for a spouse or other loved one? 7. Would you like to make arrangements now for future income? If you answered yes to any of these questions, then a charitable gift annuity could be the solution a solution that works for you while helping to preserve our natural heritage, protect our health, and promote a clean energy future for generations to come.

4 3. HOW DO I BENEFIT? One of the reasons gift annuities are so popular is that they are such a flexible planning tool. 1. Realize Fixed, Annual Income For as Long as You Live A charitable gift annuity with payments that start immediately is the most popular type of gift annuity. Your payments are regular and fixed and never change no matter how long you live or how the market fluctuates. 2. Provide Financial Security for a Loved One Earthjustice gift annuities can be set up to benefit up to two people, making them an ideal way to provide financial security for a spouse or other loved one. If either beneficiary passes away, the surviving beneficiary will continue to receive the full annuity payment each year for life. 3. Use an Appreciated Asset to Save Taxes Two Ways The most common appreciated asset used to create a gift annuity is stock, but you can also convert mutual funds or your real estate investment into a predictable income flow. You can turn a low-yielding asset into an income producing one. And you will save on capital gains taxes. A portion of your annuity is taxed as ordinary income, a portion is taxed as capital gain and a portion may be tax-free. With a donation of real estate, you may also realize estate and income tax savings. Plus, you are immediately relieved of the responsibilities of owning and selling the property. 4. Arrange Now for Retirement Income Later If you don t need the income immediately, a deferred gift annuity might be right for you. You schedule payments to begin at least one year after your donation and you receive an immediate charitable income tax deduction. The older you are when your payments begin, the higher your payment rate.

5 4. WHAT WILL MY PAYMENT & TAX SAVINGS BE? to create your gift annuity. Here are sample payment rates and amounts for one beneficiary and a donation of $25,000. Your payment and other benefits depend on your age, donation amount, whether your gift annuity is for one beneficiary or two and what asset (cash or stock) you use If your age is Your payment rate will be Your annual payment rate will be % 5.8% 6.8% 7.8% $1,275 $1,450 $1,700 $1,950 *These rates are effective as of July 1, Rates subject to change. Want to see what your payments and tax savings would be based on your age and gift amount? There is no obligation on your part to learn more. Simply give me a call at (800) , or me at legacy@earthjustice.org to receive a free proposal customized to your objectives. Or just return the enclosed reply form and I ll get back to you right away with your example.

6 5. FREQUENTLY ASKED QUESTIONS Q. Do my payments stay the same from year to year? A. Yes. When you set up a charitable gift annuity with Earthjustice, we ll provide you with lifetime payments that remain constant even with a fluctuating stock market. Your rate never changes once your gift annuity is established. Q. How often do I receive payments? A. You decide how often you wish to receive payments, whether quarterly, semiannually or annually. It s also important to note that your payments can be directly deposited. Q. Is there a minimum amount or age required to establish a gift annuity? A. Yes. Earthjustice charitable gift annuities are available for supporters who are age 60 or older. However, if you re in your 50s, you can create a gift annuity if you defer payments to a later date usually when you are entering retirement and may benefit more from the payments. The minimum amount to establish a gift annuity is $10,000. Q. What paperwork do I need to keep for tax purposes? A. Earthjustice will send you tax statements that describe how much income you receive from your gift each year and how it s taxed. Q. How does my annuity help Earthjustice? A. Your annuity ensures our work to secure a healthy environment for future generations. Q. How can Earthjustice offer such attractive rates? A. Like you, we at Earthjustice are careful with our money. To offer attractive gift annuity rates like the ones here, we combine conservative investing with knowledge from the insurance industry about average life-spans. You may see these same rates offered by other charities you support. That s because many nonprofits follow the rate recommendations of the American Council on Gift Annuities (ACGA), a voluntary association of 23 members representing more than 1,500 gift annuity issuing nonprofit organizations. In addition to the extra assurance that the ACGA standards provide, you can feel confident knowing that your gift annuity is backed by the full faith and credit of Earthjustice an organization that has been protecting the environment for more than 40 years. Q. What should I do next? A. Contact Tracy Donahoe and Linda Coffee! They ll be happy to provide you with an example that shows you exactly what the payment rate and tax benefits would be in your situation and to answer any questions you may have.

7 6. PRAISE FOR GIFT ANNUITIES It s the gift that keeps on giving and that even gives back to the benefactor. In growing numbers, philanthropic advisers are trumpeting so-called gift annuities as a win-win proposition, because they let donors support their favorite causes and get a decent income stream in return. Smart Money magazine To more effectively fight for environmental justice and at the suggestion of my financial advisor, I have established a charitable annuity with Earthjustice. Because the earth needs a good lawyer. Joanna Katz, Earthjustice annuitant

8 FOR MORE INFORMATION CONTACT: Tracy Donahoe, Director of Planned Gifts Linda Coffee, Development Officer, Planned Gifts 50 California Street, Suite 500, San Francisco, CA (800) or