Lifelong Payments While Making a Gift
When Otterbein Cridersville resident Mabel Wright decided to provide support for that community's capital campaign to construct a Life Enrichment Center a couple of years ago, she decided to do so through gift annuities.
"They offered me a way to support the Life Enrichment Center while giving me some tangible benefits," Mabel says. "I receive lifetime payments and favorable tax savings."
A gift annuity is an agreement between one or two individuals and a charitable organization. In Mabel's case, her agreement is with Otterbein Senior Lifestyle Choices. Her payments were based on her age at the time of her contract with Otterbein.
Generally, gift annuity payment rates are higher the older you are when the gift annuity begins.
Even though the rate of payment for a particular gift annuity agreement is set when the gift annuity begins, Mabel received higher rates for additional gift annuities for which she has contracted in subsequent years.
"One of the reasons I believe that gift annuities are a good way to give is because I can count on receiving a certain fixed payment for the rest of my life," Mabel says.
Payments for a particular gift annuity are never lowered or raised because of changes in the national economy or in interest rates. All net assets of Otterbein Senior Lifestyle Choices stand behind our gift annuity agreements.
In addition to steady fixed-rate payments, those who support a charitable organization through gift annuities also can benefit from income, gift and estate tax savings. If funded with appreciated property, there is also favorable treatment of capital gains, and the payments may be partially tax-free or taxed at lower rates than other income.
A gift annuity can be created with minimum effort. Just contact a gift officer listed on the back page for an exact illustration of how a gift annuity could benefit you.