Charitable Gift Annuities

What Is a CRS Charitable Gift Annuity?

A Catholic Relief Services Charitable Gift Annuity is a way for you to make a gift that helps CRS serve poor and vulnerable people overseas, and guarantees lifetime income for you and/or someone you designate.

Gift Annuity Calculator: Use our online calculator to estimate the benefits you can enjoy with a CRS Charitable Gift Annuity plan.

How Does It Work?

  1. You donate cash, stocks, bonds or mutual funds to CRS and ask us to establish a gift annuity.
  2. Once we finalize the gift annuity agreement, CRS will begin paying a fixed, guaranteed amount of lifetime income to you and/or anyone you name.
  3. After your lifetime or that of your selected beneficiary, CRS will use the remaining principal from your gift to continue our lifesaving work overseas.

 

Charitable Gift Annuities
Charitable Gift Annuities

 

 

 

 

 

 

 

What Are the Benefits?

  • A charitable gift annuity immediately provides you with a fixed income, part of which is tax free.
  • Annuity payments are guaranteed by CRS for life.
  • You are entitled to a charitable tax deduction when you itemize your federal income taxes.
  • Your gift will help you now—and make a difference in the lives of poor and vulnerable people for generations to come.

What Are the Variables?

  • Annuity payments can begin immediately or can be deferred to a later date.
  • A CRS Charitable Gift Annuity can be paid to one or two people age 60 and older. CRS offers a Deferred Gift Annuity plan for those age 50 and above.
  • Rate of income is based on the age of the person or people receiving the annuity income when the payments begin. Your donation to establish a CRS Charitable Gift Annuity can be any combination of cash, stocks, bonds and mutual funds. When you donate long-term appreciated assets, only a portion of the capital gain will be recognized, and the capital gains tax on that portion will be spread across the income payments. You will avoid any capital gains taxes on the remaining portion. Use our Gift Annuity Calculator to estimate the benefits you can enjoy with a CRS Charitable Gift Annuity plan.

Basic Gift Illustration

Summary of Benefits


5.1% of Charitable Gift Annuity

ASSUMPTIONS:

Annuitant Age

70

Cash Donated

$10,000

Annuity Rate

5.1%

BENEFITS:

Charitable Deduction

$4,002

Annuity

$510

          Tax-Free Portion

$377

          Ordinary Income

$133

After 15.9 years, the entire annuity becomes ordinary income.

IRS Discount Rate 2.2%

These calculations are for illustration purposes only and should not be considered legal, accounting or other professional advice. Your actual benefits may vary depending on several factors, including the timing of your gift.

Your donation to establish a CRS charitable gift annuity can be any combination of cash, stocks, bonds and mutual funds. When you donate long-term appreciated assets, only a portion of the capital gain will be recognized, and the capital gains tax on that portion will be spread across the income payments. You will avoid any capital gains taxes on the remaining portion.

One Life

Age

Rate (%)

Annuity ($)

60

4.4

$440

65

4.7

$470

70

5.1

$510

75

5.8

$580

80

6.8

$680

85

7.8

$780

90+

9.0

$900

 

Two Life

Age

Rate (%)

Annuity ($)

60/65

4.0

$400

65/70

4.4

$440

70/75

4.8

$480

75/80

5.3

$530

80/85

6.1

$610

85/90

7.3

$730

90/95

8.8

$880

 

Use our Gift Annuity Calculator to estimate the benefits you can enjoy with a CRS Charitable Gift Annuity plan.

Do Charitable Gift Annuities Have a Place in Retirement Planning?

Absolutely! A gift annuity can add income, diversification and reliability to a retirement plan.

  • Guaranteed lifetime income reduces risk.
  • The combination of high-yield, tax-free income, a charitable income tax deduction and, in some cases, a reduction in capital gains taxes can markedly improve the performance of a retirement plan.

Remember, a gift annuity is not a traditional investment instrument. A distinct difference is the irrevocable nature of a gift annuity. Once established, you cannot change or reinvest a charitable gift annuity in another way.

Only charitable organizations such as CRS provide charitable gift annuities. Gift annuities are not available at banks, trust companies, brokerage firms, investment companies or other types of financial enterprises.

 

To Learn More:

Richard Balmadier, Director, Planned Giving
[email protected]
800-235-2772, ext. 7251