Gift That Also Gives You Financial Security
Looking to secure funds for life with no market risk at higher rates
than your CD? A charitable gift annuity may be the answer to your search.
With a gift annuity you simply transfer funds to the American Red Cross
of Central Maryland in exchange for lifetime payments. You (and a survivor,
if desired) will receive a fixed and attractive rate of return for life,
based on your age, free of investment worries and responsibilities.
For a free benefits summary, at no obligation, call Marlo Saindon at 410-624-2034 or email her at
Red Cross Charitable Gift Annuity Offers:
- Guaranteed payment
rates, based on age
- Income for life,
a portion of which is tax free
- An immediate charitable
- The satisfaction
of helping the Red Cross
A charitable gift annuity
is easy to set up and doesn’t require a lot of money. The minimum
contribution is $5,000. The only requirement is that you must be at
least 65 years of age or be willing to defer payments until you turn
The rate of payment you
receive doesn’t fluctuate with the stock market, interest rates
or inflation. It is firmly set at the time of your gift and never changes.
A brief contract between you and the Red Cross spells out the annuity
payments and their frequency (usually annually, semi-annually or quarterly).
Your age at the time of
the gift determines the payment rate: the older you are, the higher
the rate. The chart
below shows some examples, based on the rates of return recommended
by the American Council
on Gift Annuities.
If you itemize
deductions on your tax return, you get a tax break for a portion of
your gift, based on the payment you receive and your age at the start.
This is the government’s way of encouraging gifts to public charitable
organizations. A portion of the payments will be tax-free and if you
used securities to fund the annuity you receive a reduction in capital
Another Beneficiary, Too
If you wish, you can arrange a two-life annuity that makes payments
to you and then to another person—your spouse, for instance—for
life. The rate of return is slightly lower for a two-life annuity than
for a single-life annuity, because the payment period likely will be
longer for two lives.
Financial Support for Someone You Love
Are you financially supporting an elderly parent, sibling or friend?
If so, consider naming him or her as beneficiary of a Red Cross Charitable
Gift Annuity. You will receive an immediate charitable tax deduction
for your gift. Your loved one will receive a guaranteed lifetime income,
based on age, a portion of which will be tax-free and you will no longer
be providing support using your hard-earned after-tax dollars.
and receive even more income
A charitable gift annuity provides the benefit of immediate payments,
but if you defer the payments, the benefits multiply. With a deferred
gift annuity, you make your contribution now and receive an immediate
income tax charitable deduction, but you postpone the start of your
life income until a specified future date. The rate of return depends
on your birth date and the date when the payments will begin. Because
payments are deferred, the rate is considerably higher than the rate
for an immediate annuity.
A Gift That
By creating a charitable gift annuity, you’ll receive dependable
and unchangeable payments you won’t outlive—and you’ll
enjoy significant tax savings, too. At the same time, you’ll be
supporting the Red Cross’ commitment to relieving the suffering
caused by disasters and to saving lives. For a free benefits summary,
at no obligation, call Marlo Saindon at 410-624-2034 or email her at
This information is not
intended as legal advice. For legal advice, please consult an attorney.
Figures cited in examples should be considered approximations, as tax
and charitable giving laws are subject to change.