This is the form of "life income" gift preferred by most people. It is a one-page contract between the A.R.E and you which specifies that, in return for your giving cash or marketable securities, you and/or another beneficiary will be paid a fixed and dependable annual income for life. The annuity income is determined by your age and whether the income will be paid to one or two beneficiaries. Gift annuities can be created for a minimum gift of $5,000. Benefits include:
- A guaranteed income paid quarterly, backed by the full assets of the A.R.E., freeing you from worry about income changes
- A portion of the income is tax-free and is not counted in calculating the federal or state income tax
- A favorable treatment of long-term capital gains tax liability when highly-appreciated securities are used to fund the annuity
- The paperwork for gift annuities is simple to complete and without cost to you
The following examples are based on suggested interest rates from the American Council on Gift Annuities (ACGA), effective 9/1/06. Please call A.R.E.'s Office of Development for an extensive sample based on your exact age.
Examples |
Rate |
Income Tax Deduction |
Total Annual Income |
Tax-Free Portion |
 |
|
|
|
|
Single Beneficiary, age 65 |
6% |
$4,041.50 |
$600 |
$299.40 |
Joint Beneficiaries, age 65, 63 |
5.6% |
$3,177.30 |
$560 |
$263.20 |
Single Beneficiary, age 80 |
8.0% |
$5,147.40 |
$800 |
$516.00 |
Gift annuities also come in a deferred form, similar in concept to an IRA. You can create the annuity today, but ask that your income for life not begin until some later date (after retirement, for instance). You achieve tax deductions now and income later. Like gift annuities, deferred-payment gift annuities are easy to establish, offering a creative way to support the A.R.E. while planning for supplemental income later in life.
Examples |
Rate |
Income Tax Deduction |
Total Annual Income |
Tax-Free Income |
|
|
|
|
|
Single Beneficiary, age 40 |
20.1% |
$6,122.30 |
$2,010 |
$194.97 |
Joint Beneficiaries, age 40, 38 |
18.7% |
$5,044.20 |
$1,870 |
$190.74 |
Single Beneficiary, age 50 |
12.3% |
$5,612.30 |
$1,230 |
$220.17 |
For more information or to discuss your charitable goals, please contact us.
A.R.E. Office of Development
215 67th Street
Virginia Beach, VA 23451-2061
757-457-7165
Toll Free (USA and Canada only): 1-800-333-4499
Please note, the information on this site is not intended to be legal or financial advice. If you decide to support the Association for Research and Enlightenment, Inc., the Edgar Cayce Foundation, or Atlantic University through a planned gift, please consult your attorney or tax advisor. They are in the best position to assess your personal situation and provide guidance. A.R.E., the Edgar Cayce Foundation, and Atlantic University are all 501 (c) (3) tax exempt public charities.