The Charitable Gift Annuity

 What is it, how does it Work?

A Charitable Gift Annuity is a "life income arrangement." It offers financial benefits to you as well as an opportunity to leave part of your legacy with Habitat for Humanity Inland Valley. The annuity is a legal contract established with HHIV. It pays a fixed dollar amount during your lifetime in return for an irrevocable donation of cash and/or securities. Upon your passing, or that of the annuity's last income beneficiary, the remainder of the original donation passes to HHIV to support future projects and the individuals and families we serve.

 The information in this report is believed to be accurate and is provided for general informational purposes only. Habitat for Humanity Inland Valley is not engaged in rendering legal or tax advice. The application of any laws discussed herein may vary from state to state. Consultation with independent counsel is recommended for individual applications.          (OVER)

How do you benefit?

A charitable gift annuity offers several benefits including those listed below: 

 a.         Greater Income

When compared with most investments, our Gift Annuity rates of return may generate higher income for you and your family than you may be currently earning from other investments. 

b.         Three Tax Advantages

Charitable Income Tax Deduction –A gift annuity is considered a charitable gift. You are therefore eligible to receive an income tax deduction in the year the gift is made. Its value reflects the age of the income beneficiary(ies) and their expected lifetime income.

Tax-Free Income - A portion of your annuity income is considered a return of principal. Therefore, the income payment is partially tax-free. The balance is taxed at either ordinary income or capital gains tax rates.

Reduced Capital Gains Tax - When funded with appreciated assets, the gain on the appreciation will only be realized when you receive annuity payments. You will therefore owe a smaller amount of capital gains tax compared with selling the asset yourself. Capital gain may be amortized over your actuarial life expectancy.

c.       Annual Income - For Life!

Once established, a gift annuity will pay the determined amount annually to you (or specified beneficiaries) until your passing.

Sample Rates (set up as table)

One Beneficiary       

Age     Rate

60    4.4%

65    4.7%

70    5.1%

75    5.8%

80   6.8%

85    7.8%

90    9.0%

To learn more about how you can benefit from this opportunity, please contact Eric Bunge, Director of Special Gifts, at (951) 296-3362 ext 208, or email Eric@habitativ.org