Charitable Gift Annuities

A Financial Strategy that Makes Good Sense

By exchanging low-yielding assets for a Gift Annuity to the Pulmonary Fibrosis Foundation, you could increase your spendable  income while contributing to the important work of the Pulmonary Fibrosis Foundation. A Charitable Gift Annuity can generate the personal satisfaction that comes from supporting a worthwhile cause.

Still A Viable Option For Life-Income Charitable Gifts

Charitable Gift Annuities received a lot of publicity over the past year due to a lawsuit challenging the right of charities to issue and administer this popular planned giving vehicle. While the lawsuit outcome is still pending, federal legislation was passed in 1995, which clearly affirmed the right of charities to continue to issue Charitable Gift Annuities.

Through a Charitable Gift Annuity, a donor makes a gift to a charity and receives an income for life and/or life of a spouse or other beneficiary. Upon the death of the last beneficiary, the charity receives the remainder. A portion of the income is tax-free return of principal, similar to commercial annuities issued by insurance companies. The donor also is eligible to claim a charitable income tax deduction in the year of the gift. Charitable Gift Annuities are age sensitive and provide the greatest financial benefit to older donors, who receive the highest rates.

CHARITABLE GIFT ANNUITIES

Recommended by the American Council on Gift Annuities

The amount of charitable income tax deduction is based on the age of the beneficiary(ies) and the IRS 
Discount Rate, which is established monthly. The benefits of Charitable Gift Annuity include:

1. A lifetime income benefit guaranteed by the charity.
2. An immediate income tax charitable deduction.
3. Reduction of federal estate taxes for taxable estates in excess of $675,000.
4. Avoidance of probate on the assets placed in the annuity.
5. Professional management of the annuity investment.
6. Satisfaction of knowing that the remainder interest in the annuity will help make a difference in the lives of those served by the charity.

Is a Charitable Gift Annuity Right for You?

Establishing a Charitable Gift Annuity is a smart financial move for many people. If you think a Charitable Gift Annuity makes sense for you now, or may in the future, please let us discuss it with you. There is no obligation of any kind and all conversations will be held in strictest confidence. 

For more information contact Michael Rosenzweig, Ph. D. at:
Pulmonary Fibrosis Foundation
1332 N. Halsted St. Suite 201
Chicago, IL 60622

Phone: 312.587.9272
or email breathe@pulmonaryfibrosis.org

Updated May 25, 2007