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A Winning Team
Kare members are nurtured by
combining team sports, a caring
leader and lessons from the Bible.
You can win too by establishing
a legacy gift that supports children
and provides you lifetime income.

Gifts that Pay You Income

Charitable Gift Annuities

If you would like to receive a tax deduction while making a gift that pays you an income for life, consider a Kare Youth League charitable gift annuity.

Here is what may be the most concise explanation of gift annuities you will ever hear:

  • You make a gift of at least $25,000 to Kare Youth League.
  • In exchange you receive fixed annual payments – for as long as you live – at an attractive payment rate and a charitable deduction, too.
  • You enjoy the satisfaction of making a gift that benefits you now and, in the future, helps fund Kare Youth League’s work with boys and girls.
Charitble Gift Annuity Graphic 1

Maximum Flexibility

One of the reasons gift annuities are so popular is because they are so flexible. Here are the most common options:

An Annuity with Immediate Payments

The most common type of gift annuity. In exchange for your donation of $25,000 or more, Kare Youth League will make annual fixed payments to you for as long as you live, starting when your gift annuity contract is signed.

If Paula, age 82, establishes a $50,000 charitable gift annuity with Kare Youth League, her payment rate will be 7.0%*. she will receive an annual income of $3,500 – for the rest of her life! Compare that to the income on a CD earning less than 1%. In addition, Paula may be eligible for a substantial income tax charitable deduction.

*Based on payment rates as of July 1, 2020.

A Gift Annuity Funded with Appreciated Securities

If you have stock or mutual funds that you have held for more than a year and that have increased in value, you can use them to fund your gift annuity and you will bypass a significant portion of the capital gains tax. The remaining gain will be apportioned over several years of your annuity payments rather than being taxed all at once.

Maria, age 80, wants to do more to help Kare Youth League, so she donates $100,000 to create a charitable gift annuity by using stock for which she originally paid $30,000. Her payment rate will be 6.5%, which results in an annual payment of $6,500. In addition, she will be eligible for an income tax charitable deduction and about $33,400 of her capital gain will never be taxed.*

*Based on payment rates as of July 1, 2020. For illustration purposes only.

 

A Gift Annuity with Two Beneficiaries

One of the great things about gift annuities is that they can be set up to benefit two people, making them an ideal tool to provide financial security for a spouse or other loved one.

 

Robert, age 79, and Eleanor, age 77, would like to have a steady source of supplemental income. They also want to help Kare Youth League, so they donate $100,000 to create a charitable gift annuity. The payment rate for two beneficiaries, age 79 and 77, is 5.0%*, which results in an annual payment of $5,000. When either of them passes away, the surviving spouse will continue to receive the full $5,000 charitable gift annuity payment each and every year, for life. They receive a significant immediate tax deduction, and a portion of each annual payment will be tax-free.

*Based on payment rates as of July 1, 2020.

 

An Annuity with Deferred Payments and a Higher Rate

If you don’t need more income immediately, a “deferred gift annuity” might be right for you. The older you are when your payments begin, the higher your payment rate will be. You schedule the payments to begin when you will need them and enjoy a higher payment rate than with an annuity that pays you immediately.

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A Life Income Gift Funded by Real Estate

Convert your real estate investment into a predictable income flow and realize capital gains and other tax benefits. Contact Dan Kirby at (626) 201-0063 for details.

 

Diana, age 63, has had a successful career. In fact, she loves it so much that she plans to continue working until she’s 70. At that time, she will welcome the additional income from a $75,000 Kare Youth League charitable gift annuity. She will be eligible for an income tax deduction now and a portion of her payment will be tax-free. Diana’s payment rate at age 70 will be 5.6% and her fixed annual payment will be $4,200, a nice supplement to her retirement income. This is significantly higher than the payment rate she would receive if she waited until age 70 to make her gift (4.7%), or if she started her payment now (4.1%) at age 63.

*Based on payment rates as of July 1, 2020.

 

We’re Here to Help

Dan Kirby

Dan Kirby

Director
Kare Youth League Planned Giving
(626) 201-0063
Email: plannedgiving@kyl.org

Complimentary
Planning Guides

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Kare Youth League • PO Box 662080, Arcadia, CA 91066-2080
Kare Youth League is a 501(c)(3) tax-exempt organization (EIN: 95-1869644), and your donation is tax-deductible within the guidelines of U.S. law.