THE UNITED CHURCH FUNDS CHARITABLE GIFT ANNUITY

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1 THE UNITED CHURCH FUNDS CHARITABLE GIFT ANNUITY HAVE YOU CONSIDERED A GIFT THAT BENEFITS YOU AND YOUR UCC CHURCH OR MINISTRIES? UNITED CHURCH FUNDS

2 SUPPORT YOUR UCC CHURCH OR MINISTRIES Would you like to do more to support your UCC church and/or ministries but saving for retirement or achieving your current retirement income needs are holding you back? What if there is a way to do both? The UCF Charitable Gift Annuity ( Gift Annuity ) could be the perfect solution since it provides guaranteed fixed income payments for life while supporting the UCC causes that matter most to you WHAT IS A CHARITABLE GIFT ANNUITY AND HOW DOES IT WORK? A Gift Annuity is a contract (not a trust ), under which a charity, in return for a transfer of cash or marketable securities, agrees to pay a fixed amount of money to one or two individuals, for their lifetime. A person who receives payments is called an annuitant or beneficiary. The payment is fixed and unchanged for the term of the contract. A portion of the payments is considered to be a partial tax-free return of the donor s gift, which is spread in equal payments over the life expectancy of the annuitant(s)*. The minimum gift amount to establish a UCF Gift Annuity is $2,500. WHO FUNDS A CHARITABLE GIFT ANNUITY? Typically, a Gift Annuity is funded by people nearing or in retirement who want to receive a stream of fixed income payments for life. But a Gift Annuity can also provide an attractive solution for younger donors seeking to fund a source of income for an aging relative or loved one. WHAT OPTIONS DO I HAVE FOR RECEIVING ANNUITY PAYMENTS? United Church Funds offers two types of Gift Annuities: Immediate and Deferred Payments. Each provides an immediate tax deduction when the gift is made, and guaranteed fixed payments to the beneficiaries for life or a term of years. They differ, however, in when you, or the annuitants you choose, begin to receive payments. *SOURCE: AMERICAN COUNCIL ON GIFT ANNUITIES

3 IMMEDIATE GIFT ANNUITY Payments to beneficiaries begin immediately. The payment rate is based on the age of the annuitant(s) at the time the gift is made. This strategy is attractive to donors who wish to convert non-income producing assets into annuity payments they receive right away. DEFERRED PAYMENT GIFT ANNUITY Payments begin on a future date you specify at the time you make your gift. The payment rate is based on the age of the annuitant at the time payments are set to begin, and the length of time the payments are deferred. The older the annuitant and the longer the deferment, the higher the rate. This strategy is attractive to donors who know when they will need to begin receiving payments.

4 ADVANTAGES OF A GIFT ANNUITY INCOME AT ATTRACTIVE RATES GUARANTEED BY UCF In exchange for your gift of cash or appreciated securities, United Church Funds (UCF) will invest those funds in a socially responsible investment fund and make fixed payments to you and your loved ones (the annuitants) for life. The remaining principal and any accrued interest will be transferred to the United Church of Christ (UCC) church or ministries you designated as the beneficiaries when you made your gift. CAPITAL GAINS AVOIDANCE When donors fund their gift with appreciated securities and list themselves as one of the annuitants, they avoid the upfront capital gains tax due on that investment. Important: if you plan to fund your gift this way, do not sell the appreciated securities. Instead, transfer the securities to UCF. Conversely, if the securities have lost value since your purchase, sell the securities to take the capital loss, then use the proceeds to fund your gift. IMMEDIATE TAX DEDUCTION Donors can take an immediate tax deduction on the fair market value of their gift minus the present value of the retained annuity interest. TAX-FREE INCOME While a portion of the annuity payments is considered ordinary income and/or capital gains, part is treated as the return of principal, which is tax-free. TO SEE THE TAX IMPLICATIONS OF YOUR GIFT AND PAYMENTS, PLEASE REQUEST AN ILLUSTRATION SPECIFIC TO YOUR SITUATION. WE URGE YOU TO SHARE THIS INFORMATION WITH YOUR LEGAL/TAX ADVISERS TO EINSURE YOUR INCOME, TAX, AND PHILANTHROPIC OBJECTIVES ARE MET.

5 GIVE AND RECEIVE INCOME FOR LIFE United Church Funds Charitable Gift Annuity is a popular and simple way to support the UCC community. This gift provides donors a steady stream of income for life, but the most compelling feature is the ability to name someone other than the donors as the recipient of the income. In a way, a Gift Annuity allows the donor to make a gift that gives twice. TAKE CARE OF A SURVIVING SPOUSE OR PARTNER A Gift Annuity can pay up to two individuals, making it possible to extend the income stream to a surviving spouse or partner. You will have the comfort of knowing your gift will benefit your loved one for as long as they live. SUPPORT AN AGING PARENT, SIBLING OR FRIEND If you are supporting a loved one using after-tax dollars, you may want to consider the benefits of a Gift Annuity. The steady stream of income is tax-advantaged and will last as long as needed. SHOW APPRECIATION FOR A FAITHFUL CAREGIVER Many of us rely on caregivers to help us or our parents age in place. Often, those caregivers only have minimal retirement benefits of their own. Your Gift Annuity could provide much-needed retirement income, and show gratitude for their years of service. No matter whom you elect to receive the Gift Annuity income, you will have the satisfaction of knowing when the contract ends, the remaining principal will go to support the UCC church and/or ministries that matters most to you.

6 FOR MORE INFORMATION OR TO REQUEST A PERSONALIZED GIFT ILLUSTRATION PLEASE CONTACT: LYNNE HANSEN Phone: MILLY HERNANDEZ Phone: OR giftannuities@ucfunds.org As an associated ministry of the United Church of Christ, United Church Funds offers Charitable Gift Annuities and other life income giving vehicles for the benefit of UCC churches and ministries. THE INFORMATION IN THIS BROCHURE IS NOT INTENDED AS LEGAL OR FINANCIAL ADVICE. COPYRIGHT 2017 PGMARKETING.COM AND UNITED CHURCH FUNDS UNITED CHURCH FUNDS