When most people consider charitable giving, they aren’t thinking of their own benefit. But there are gifts that can help you and the ELCA Foundation. Deferred charitable gift annuities (DCGA) are an excellent way to help the ELCA Foundation continue to do our work and can ensure a more secure financial future as you prepare for retirement.
You make a contribution of cash or appreciated property owned longer than one year to the ELCA Foundation. We agree to make fixed payments to you for the rest of your life starting at any date you select — beginning at least one year from the date of the gift.
The payment rate is based on a combination of the recipient’s age when payments begin and the length of time between the creation of the annuity to the first payment. The older the annuitant (recipient of the DCGA payments) when payments begin and the longer the deferral, the higher the rate of the annual payments.
Casey, 60, gives the ELCA Foundation $40,000 in appreciated stock owned longer than one year in exchange for a deferred gift annuity that will begin making payments 5 years from now. The cost basis in the stock is $10,000. Using the suggested rates, Casey’s deferred annuity will pay at an annual rate of 7.2%, or $2,880. Casey’s federal income tax charitable deduction will be approximately $15,867.* If Casey is in the 32% income tax bracket, this charitable deduction will result in a tax savings of $5,077.
In the chart you will see rates recommended by the American Council on Gift Annuities, which most organizations follow. Check with our representative for current rates and applicable ages for deferred charitable gift annuity eligibility according to our most current policies.
*Based on a 5.2% charitable midterm federal rate. Deductions and calculations will vary depending on your personal circumstances.
Sample Deferred Gift Annuity Rates for One Person | ||
---|---|---|
Age | Deferred Until Age | Rate |
55 | 65 | 9.1% |
60 | 65 | 7.2% |
60 | 70 | 10.0% |
65 | 70 | 8.0% |
65 | 75 | 11.1% |
If you itemize your tax returns, you can receive a federal income tax charitable deduction. The deduction is equal to the difference between the fair market value of the property or the amount of cash given to the ELCA Foundation and the value of your deferred charitable gift annuity payments.
If you fund the DCGA with appreciated property that you have owned longer than one year, you are not responsible for the capital gains tax at the time of your gift. Instead, a portion of your payments will be taxed as capital gain (provided that you are the primary recipient and the annuity interest is assignable only to the ELCA Foundation).
Part of each gift annuity payment is tax-free. The tax-free portion of the payment is considered a “return of principal” and continues through the recipient’s estimated life expectancy.
The ELCA Foundation exists to develop a culture of intentional generosity and financial stewardship to support and sustain ELCA ministries. The above examples may reference making a gift to the ELCA Foundation when providing sample language or in describing how a gift works for illustrative purposes. The ELCA Foundation processes gifts according to donor wishes defined in a distribution agreement or to fund a named endowment. It's important to discuss your gift with a Regional Gift Planner who can help document your gift intentions or explore how you may make a direct gift to any ELCA-related ministry. Alternatively, a gift may be made directly to a ministry of your choice simply by replacing the name "ELCA Foundation" or "Endowment Fund of the ELCA" with the appropriate name, address, and tax id of the ministry you wish to support.
The ELCA Foundation exists to develop a culture of intentional generosity and financial stewardship to support and sustain ELCA ministries. The above examples may reference making a gift to the ELCA Foundation when providing sample language or in describing how a gift works for illustrative purposes. The ELCA Foundation processes gifts according to donor wishes defined in a distribution agreement or to fund a named endowment. It's important to discuss your gift with a Regional Gift Planner who can help document your gift intentions or explore how you may make a direct gift to any ELCA-related ministry. Alternatively, a gift may be made directly to a ministry of your choice simply by replacing the name "ELCA Foundation" or "Endowment Fund of the ELCA" with the appropriate name, address, and tax id of the ministry you wish to support.
When most people consider charitable giving, they aren’t thinking of their own benefit. But there are gifts that can help you and the ELCA Foundation. Deferred charitable gift annuities (DCGA) are an excellent way to help the ELCA Foundation continue to do our work and can ensure a more secure financial future as you prepare for retirement.
You make a contribution of cash or appreciated property owned longer than one year to the ELCA Foundation. We agree to make fixed payments to you for the rest of your life starting at any date you select — beginning at least one year from the date of the gift.
The payment rate is based on a combination of the recipient’s age when payments begin and the length of time between the creation of the annuity to the first payment. The older the annuitant (recipient of the DCGA payments) when payments begin and the longer the deferral, the higher the rate of the annual payments.
Casey, 60, gives the ELCA Foundation $40,000 in appreciated stock owned longer than one year in exchange for a deferred gift annuity that will begin making payments 5 years from now. The cost basis in the stock is $10,000. Using the suggested rates, Casey’s deferred annuity will pay at an annual rate of 7.2%, or $2,880. Casey’s federal income tax charitable deduction will be approximately $15,867.* If Casey is in the 32% income tax bracket, this charitable deduction will result in a tax savings of $5,077.
In the chart you will see rates recommended by the American Council on Gift Annuities, which most organizations follow. Check with our representative for current rates and applicable ages for deferred charitable gift annuity eligibility according to our most current policies.
*Based on a 5.2% charitable midterm federal rate. Deductions and calculations will vary depending on your personal circumstances.
Sample Deferred Gift Annuity Rates for One Person | ||
---|---|---|
Age | Deferred Until Age | Rate |
55 | 65 | 9.1% |
60 | 65 | 7.2% |
60 | 70 | 10.0% |
65 | 70 | 8.0% |
65 | 75 | 11.1% |
If you itemize your tax returns, you can receive a federal income tax charitable deduction. The deduction is equal to the difference between the fair market value of the property or the amount of cash given to the ELCA Foundation and the value of your deferred charitable gift annuity payments.
If you fund the DCGA with appreciated property that you have owned longer than one year, you are not responsible for the capital gains tax at the time of your gift. Instead, a portion of your payments will be taxed as capital gain (provided that you are the primary recipient and the annuity interest is assignable only to the ELCA Foundation).
Part of each gift annuity payment is tax-free. The tax-free portion of the payment is considered a “return of principal” and continues through the recipient’s estimated life expectancy.