A wonderful way to give and receive in 2011

Special to The Criterion

The Catholic Community Foundation has many options to support the ministry of the Church and financially help the people we serve.

If given the opportunity, most of us would like to leave a lasting legacy to the ministry programs that mean the most to us. Through more tax-favored ways of giving, more of us can experience the joy of making a difference.

Whether you are planning for the future or seeking income today, a charitable gift annuity can benefit you and the Archdiocese of Indianapolis, your parish, school or agency.

Charitable gift annuities are one of the best ways to give to the Church and produce a steady personal income in retirement.

Mary, age 74, has several certificates of deposit—CDs—coming due. She has used the interest from the CDs to supplement her income, but the current interest rates are quite low.

Mary is intrigued by the idea of a charitable gift annuity because it pays a higher rate of interest based on her age, provides the charitable tax deduction, affords partially tax-free income and benefits her Church ministry.

Mary, being less than enthusiastic about the present CD renewal rate, explores the charitable gift annuity. She likes the idea that, in exchange for her gift, she will receive lifetime payments at a fixed payout, regardless of fluctuations in markets or interest rates.

The current income tax deduction for a charitable donation also is appealing. Mary learns that she can make a gift of $10,000 and receive lifetime annual payments of $630, which is a 6.3 percent payout rate. And nearly $480 of the annual income of $630 is tax-free until her death.

The $10,000 gift also would provide an income tax charitable deduction of $3,892 for the current tax year or it can be spread over five years if the donor cannot take the full deduction in one year. With all the benefits of the charitable gift annuity, the 6.3 percent payout rate is the equivalent of 10.3 percent in the market.

From Mary’s perspective, the gift annuity has a lot to offer—substantial benefits for her and the Church.

Charitable gift annuity payment rate chart—single life, current

Age Rate

• 70 5.8 percent
• 75 6.4 percent
• 80 7.2 percent
• 85 8.1 percent
• 90 9.5 percent

For ages between those listed, rates will be between two age markers. For example, a 74 year-old annuitant would receive a rate of 6.3 percent. (These rates are as of July 1, 2010. Please contact our office to verify current rates.)

By funding a charitable gift annuity, you and your family will preserve our Catholic faith and create a lasting legacy for future generations and, at the same time, provide you and your family with financial and intangible benefits.

For more details or assistance in exploring opportunities that meet your financial and philanthropic goals, contact Ellen Brunner, director of planned giving, at ebrunner@archindy.org or call 800-382-9836, ext. 1427, or 317-236-1427.

Also, visit our website at www.archindy.org/ccf.

(Related: Make a tax-free gift through an IRA charitable rollover)