Charitable Gift Annuity
How It Works
- You transfer cash or securities to the ACLU Foundation.
- The ACLU Foundation pays you or one other beneficiary you name fixed income for life.
- The remaining balance passes to the ACLU Foundation when the contract ends at the death of the last beneficiary.
- Beneficiaries must be at least 60 years of age to begin receiving payments.
- Our minimum gift requirement is $10,000.
- See our current annuity rates.
- Calculate your annuity payments.
- Currently, the ACLU Foundation does not issue gift annuities to residents of Alabama, Hawaii, Tennessee, or Wisconsin.
- Receive dependable, fixed income for life in return for your gift.
- In many cases, increase the yield you are currently receiving from stocks or CDs.
- Receive an immediate income tax deduction for a portion of your gift.
- A portion of your annuity payment will be tax-free.
Please contact us so that we can assist you through every step of the process.
Questions and Answers
Will my gift qualify for the Legacy Challenge?
Yes. If you establish a charitable gift annuity with the ACLU Foundation, the LuEsther T. Mertz Charitable Trust will make a cash donation of up to $10,000 to the ACLU today based on your gift's charitable deduction, while matching funds are available.
How are the annuity payments guaranteed?
A gift annuity contract becomes a legal financial obligation of our charity and is backed up by all our assets.
Is it better to give cash or appreciated securities for my gift annuity?
Both have distinct advantages. A gift of cash will produce a larger tax-free portion of the annuity. A gift of stock can increase your income because of reduced capital gains cost. Both assets produce an equal annuity rate and charitable income tax deduction.
Can I include my children as income beneficiaries of my gift annuity?
A charitable gift annuity can only be set up for one or two lives. This is typically a husband and wife, but it could be two siblings, or two friends, etc. Beneficiaries at least 60 years of age to begin receiving payments.
What’s the difference between a commercial annuity and a charitable gift annuity?
A commercial annuity, typically sold by banks and life insurance companies, will provide the owner with fixed or variable income based on commercial rates of return. These plans establish their annuity payments based on the assumption that all of the assets in the plan will be used up by the end of the income beneficiaries' lives.
A charitable gift annuity is part guaranteed annuity and part charitable contribution. The donor receives a partial income tax deduction based on the assumed value of the portion of the gift the charity will ultimately receive. A gift annuity establishes its payments on the assumption that there will be something left for the charity at the end of the contract. Often annuity rates for gift annuities cannot compete with the annuity rates of a commercial annuity because of the charitable component in the contracts. But then, there are fewer tax benefits with a commercial annuity.
Can I defer my annuity payments?
Yes, you can make a gift now for an annuity contract that will defer your payments to a future date that you decide, typically sometime in your retirement years when you will need the income. In this sense, a deferred payment gift annuity can serve as a type of tax-deferred savings plan that will provide you with guaranteed income in the future.
How do I get started?
- If you want to fund a gift annuity with cash, simply complete the application form, attach a check and mail it to our office.
- If you would like to establish a gift annuity funded by marketable securities or other appreciated property, please call 877-867-1025 to speak with a member of the ACLU Foundation's gift planning staff.
To learn more about other ways to leave a legacy to the ACLU through a planned gift, click here.
Questions? We're here to help. Email us or call toll-free 877-867-1025.