Leaving your Legacy With Charitable Gift Annuities

By Frank J. Cognata, Jr.

For almost 400 years the priests and brothers of the Congregation of the Mission (the Vincentians) have followed Jesus Christ by serving the poor; preaching the good news to people all over the world; forming men for ordination to the priesthood and religious life; and offering the ministries of word and sacrament to people in local parishes. These priests and brothers share a special bond as they follow in the footsteps of their founder, St. Vincent de Paul.

However, there is also a special bond that is shared between the Vincentians and those people who partner with them by offering their time, talent, and treasure. Without such resources the Vincentians would not be able to carry out their mission. A Charitable Gift Annuity is another way you can assist the Vincentians and receive benefits yourself.

With a Charitable Gift Annuity, your gift will:

• Earn a fixed payment for life secured by the Congregation of the Mission
• Earn 5, 6, 8% or more for your life
• Give you an immediate tax deduction
• Reduce your annual income tax

A Charitable Gift Annuity allows you to donate cash, property or other assets and receive a secured fixed income for as long as you live. You also have the option to name a secondary life beneficiary (such as your spouse) who will receive the income after your death for the remainder of his or her lifetime. Payments are based on the donor’s age and are determined by standard annuity rates, which are established by the American Council on Gift Annuities (a national organization of which most charitable organizations are members.)

Sample interest rates are shown below. Under existing federal and state tax laws, an immediate partial tax deduction is permitted and a portion of the annual income is tax-free. The amount of deduction as well as the payout, is determined by the number of life beneficiaries and their ages.

Tax Benefits

• With this annuity you will receive an immediate charitable tax deduction for the year in which the gift annuity is established.
• A portion of your income will be tax-free.
• If you established a gift annuity with appreciated assets, you will avoid a portion of the capital gains tax.
• Your gift might lower your estate taxes.

Gift Annuity Rates

This is a sampling of rates for a single-life gift annuity.

   Age	Rate	Age	Rate
   55	5.3%	75	6.7%
   60	5.5%	80	7.6%
   65	5.7%	85	8.9%
   70	6.1%	90 and over	10.5%

For more information, please contact: Teresa Manna, Director of Development, at 314-344-1184 or tmanna@vincentian.org.