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Charitable Gift Annuities

… enjoy a guaranteed income for life and tax benefits by making a gift that will help support our mission of caring for developmentally disabled adults at the Key Training Center.

WHAT IS A CHARITABLE GIFT ANNUITY?
One of the oldest and simplest life-income arrangements, a Charitable Gift Annuity (CGA) is a simple contract between you and the Key Center Foundation. In exchange for your irrevocable gift of cash or securities, the Key Center Foundation agrees to pay one or two annuitants you name a fixed sum each year for life.
Annuity payments are based on the rates recommended by the American Council on Gift Annuities and are not meant to be competitive with commercial annuities. The payments are guaranteed by the resources of the Key Center Foundation, and backed by a segregated reserve account. The minimum gift amount for a Key Center Foundation Annuity is $5,000.

WHAT ARE THE ADVANTAGES OF GIFT ANNUITIES?
• It costs nothing to set up a Charitable Gift Annuity.
• Relatively small amounts can be contributed, compared to trusts.
• Your income payments are fixed and guaranteed by the assets of the Foundation.
• Gift Annuities pay relatively high rates, up to 11.3% at age 90 and over.
• You are entitled to take a charitable income tax deduction for the gift portion of your annuity in the year you make your gift, with up to five years to take any unused deduction (subject to the 50% of adjusted gross income limitation).
• If you take a rate lower than the American Council on Gift Annuities rate, you can increase both your tax deduction and your ultimate gift to the Key Center Foundation.
• You will pay capital gains tax for a gift of appreciated securities only on the projected income benefit from your gift. If you yourself are an annuitant, your reduced capital gains tax liability will also be spread out over the life of the contract.

DIFFERENT TYPES OF GIFT ANNUITIES
Immediate Payment: Payments begin as soon as the contract takes effect. You may elect quarterly, semi-annual or annual payments. Annuitants must be age 55 or older.
Deferred Payment: This option allows annuitants at least 50 years old to defer the start of payments to age 55 or retirement age. As for an immediate payment gift annuity, you can take a charitable deduction in the year you make your gift. Because payments are deferred, however, you or your designated annuitants will receive higher income payments later.

ESTABLISHING A GIFT ANNUITY WITH APPRECIATED SECURITIES
If you establish a Gift Annuity with appreciated securities, part of your gift annuity payments will be taxed to you as capital gain.
In effect, part of the annuity that you would have received as a tax-free return of investment had you used cash to establish your annuity will be replaced by capital gain.
However, your reportable gain will be spread over "life expectancy", and the total amount of your reportable gain will be less than if you had sold your stock.

INCOME BENEFICIARY You decide who receives the income. When you establish your gift annuity, you can name yourself, a loved one, or yourself and a loved one jointly, to receive the income every year. If you are the only beneficiary, the payments will continue for as long as you live. If you and a loved one are joint beneficiaries, the payments will continue for as long as either of you live. Your income is guaranteed. The income you’ll receive is a fixed amount that you can depend on every year; the amount is calculated and included in the annuity contract. The Key Center Foundation uses rates set by the American Council on Gift Annuities.

WHAT INCOME AND TAX DEDUCTION CAN I EXPECT FROM MY GIFT?

The Key Center Foundation Planned Giving Department can provide income and charitable deduction proposals for gift annuities and trusts. You may privately customize your figures and change your options. Gift calculations are provided for illustrative purposes only; actual values may vary depending on variables such as the timing of your gift. The Key Center Foundation does not provide tax or legal advice.

HOW DO I SET UP A CHARITABLE GIFT ANNUITY WITH THE KEY CENTER FOUNDATION?

It’s easy. You sign a standard gift annuity contract and transfer assets to the Key Center Foundation Gift Annuity Fund. Assets will be valued on the official date of transfer and the Foundation will pay you or your designated annuitant(s) the agreed-upon percentage in the contract as a fixed income payment for life.

To arrange for an annuity or to receive a personalized illustration, please contact the Key Center Foundation. Call Iris Whittaker, at 352.527.8228 or E-mail at iwkcf@keytrainingcenter.org.