Charitable Gift Annuities
NEW IN 2023: Use Qualified Charitable Distributions to Purchase Charitable Gift Annuities
CHARITABLE GIFT ANNUITIES are contractual agreements between you and the Jewish Community Foundation that enable you to receive a guaranteed fixed annuity payment while you (and/or your beneficiary) are alive, with the remaining assets supporting the community after your death.
How Does It Work?
You contribute cash or marketable securities worth a minimum of $5,000 to the Jewish Community Foundation. In return, the Foundation will pay you and/or your designated beneficiary a guaranteed fixed income for life. The payment rate depends upon your age and the market rates at the time of the gift. The older you are at the time of the gift, the greater the fixed income received.
Changes in the Federal tax law enable a donor making a Qualified Charitable Distribution (QCD) beginning at age 70½ to purchase charitable gift annuities.
We offer one-life or two-life charitable gift annuities for people 60 years of age and older, as well as deferred gift annuities for those 50 years of age and older.
What Are The Benefits?
- You can provide immediate and guaranteed income for yourself, a spouse, a child or another individual. (Gift annuities for persons other than you or your spouse may have gift tax and capital gains tax consequences).
- Payments can be received annually, semiannually, quarterly or monthly.
- You receive a charitable income tax deduction in the year the gift was made for the portion of the transfer that represents the charitable gift.
- In some cases, a portion of your annuity payment may be tax-free.
- The age at which RMD’s are mandatory is 73 beginning in 2023. If you meet the age requirements, your purchase of a charitable gift annuity may satisfy your RMD. A donor can make a QCD beginning at 70½ and prior to being subject to RMD, but the additional tax benefit of satisfying the RMD with the QCD begins when you are subject to the RMD.
- If highly appreciated assets are used to fund the charitable gift annuity, you may not incur capital gains tax on the transfer of those assets. The capital gains tax you pay on any income you receive may be spread over a lifetime.
- Upon your death or that of your designated beneficiary, an unrestricted endowment fund or a Legacy Fund is created in your name at the Foundation.
- You invest in the future of the Jewish community as the funds continue to support Jewish Pittsburgh after your death.
We’ll pay you to be a philanthropist. Philanthropy for your community. High returns for you.
With a Foundation Charitable Gift Annuity you can receive guaranteed income for life, partly tax-free, at payout rates much higher than current CDs or stock dividends. At the same time, your investment of $5,000 or more gives you the personal satisfaction of knowing that your commitment will make a difference by helping to ensure the future vitality of our Jewish community in Pittsburgh, Israel and around the world.
Foundation Charitable Gift AnnuityExamples of Single-Life $10,000 Gift Annuity
November 2023 AFR 5.6%
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We encourage you to contact the Foundation office at 412-992-5216 to receive an illustration of the personal and financial benefits of a charitable gift annuity.