Gifts That Pay You


The oldest and best known of charitable gifts that pay donors income for life is the charitable gift annuity described here. Charitable remainder trusts also pay donors income for life, and give them an immediate income tax deduction and relief from capital gains tax, but the charitable gift annuity payments are also backed by the full faith and credit of the issuing charity. The payments are fixed and so completely predictable. The charitable gift annuity allows you to make a gift to a good cause while giving you a current income tax deduction and payments for life. In this way, some donors discover they can make a far more generous future gift to the Franciscans of St. John the Baptist Province than they thought possible.

A gift annuity is simple to create. You fund your annuity with a gift of cash or stock. You are then paid a guaranteed fixed amount monthly, quarterly, semiannually or annually for life. You must be at least 60 when the payments begin and your annuity must be created with gifts having a total value of at least $20,000.

Your gift annuity can provide payments for one or two lives. Both plans generate an immediate charitable tax deduction and partially bypass capital gains tax. In addition, part of your payment will be tax-free and all of your gift will pass to the Franciscans of St. John the Baptist Province free of estate tax.

Age Current Rates
60 4.7%
65 5.1%
70 5.5%
75 6.2%
80 7.3%
85 8.3%
90+ 9.5%

Rates differ for two-life annuities.

*Annuity rates change from time-to-time. Those listed and the example given may understate or overstate the actual rates in place.