A Gift That Gives Back
Some donors want to make a major gift to Scouting, but don’t want the ongoing responsibility of an advised fund, or can’t afford the minimums required for charitable trusts. The simplicity of a charitable gift annuity may be just what they need to meet their objectives.
The BSA Gift Annuity Program allows donors to make a gift to Scouting and, in return, receive lifetime income – part of which is tax free – and a current charitable income tax deduction. The annuity rate is guaranteed by the general assets of the Boy Scouts of America, established at the time the gift annuity is created, and will not change for the duration of the gift annuity. Some donors choose to create a gift annuity (and a stream of income) for a spouse or other family member. When the gift annuity ends, after the lifetime of the annuity recipients, the remainder goes to the local council(s) chosen by the donor.
The minimum gift to establish a gift annuity is only $10,000. The donor may use cash, stocks, bonds or mutual fund shares to make the gift. Annuity beneficiaries must be at least 50 years of age at the time the gift annuity is established, and most donors want their annuity payments to begin immediately. Donors, though, can also choose a deferred gift annuity – they get a tax deduction now, but delay the annuity payments until a later date when the income is most needed (e.g., at retirement).
An example of how this works is as follows:
$100,000 Charitable Gift Annuity for a donor 86 years of age has a rate of 8% and would generate $8,000 per year with the remainder going to the Orange County Council, Boy Scouts of America as a lasting legacy.
Sample rates for single life gift annuities are:
69 years old: 5%
76 years old: 6%
81 years old: 7%
86 years old: 8%
90 years old: 9%
For more information on this program, please contact Devon Dougherty at 714-546-8558 ext. 145 or firstname.lastname@example.org.