Giving

Planned Giving

Frequently Asked Questions

How can Charitable Gift Annuities pay interest rates of 6.5% and higher?

First, remember that interest rates are based on the ages of the annuitant(s). The interest rate is 6.5% for someone who is 70 and rises to 11.3% for one who is 90 or older. Secondly, it is presumed that some of the payment will be a return of principal (the original gift) to the donor or designated beneficiary. That is why a portion of each monthly or quarterly payment received is not taxable as income.

Remember, also, that the annuity payments are guaranteed for life and are not dependent on the original amount of the gift annuity. See Charitable Gift Annuities.

Why is it good estate planning to make charities the beneficiary of IRAs?

The standard, deductible IRA, (not Roth) is considered taxable income to your dependents at your death, while other assets from your estate generally are not taxable to heirs. One can accomplish the most for both, charity and heirs, by naming your charity as one of the beneficiaries of an IRA. Remember that minimum distribution requirements from IRAs, over time, may affect your intended results.

Where can I get additional information on these subjects?

See the pages, Links, for more sources of information, or Contact Us to request a brochure that describes and illustrates many estate and gift planning options.

Planned Giving Home Page

Estate Planning

Glossary

Planned Giving Options

Planned Giving Committee

Flame Society

Plymouth Endowment Fund

Links