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| 3ABN Charitable Gift Annuity |
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Helping 3ABN Evangelize The World
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The Charitable Gift Annuity program has been adopted by 3ABN as a service to our friends and faithful supporters. Many have expressed a desire to make a gift to the soul-winning outreach of 3ABN, while still retaining income from the gift property during their lives.
It is important to remember that your Gift Annuity will help 3ABN to continue its evangelistic outreach. Our job is to work together to save souls into the kingdom of God and hasten the coming of the Lord Jesus Christ.
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What is a Charitable Gift Annuity (CGA)?
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A Charitable Gift Annuity is a contract between you and 3ABN in which you exchange a gift of cash or other assets for a fixed amount of income each year for the rest of you life. A CGA is geared for those who are 65 and over.
This is a unique way you may make a substantial gift to enhance the soul-winning ministry of 3ABN. You will also receive a fixed income for life for you and/or other family members and possibly reduce your income tax.
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You purchase an annuity for an older relative or friend who will benefit from its income for life. You receive a charitable income tax deduction in the year the gift is made.
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You will receive a fixed income for life paid to you annually. If you want to receive payments more often, however, just ask about more frequent payments. The older you are, the larger your income rate is.
You are entitled to a charitable income tax deduction immediately. Some of your annuity income is tax-free because part of it is considered interest and part of it is considered a return of principal, according to a formula based upon the amount paid and your age. Probate and estate administration costs as to the donated assets are avoided upon the death of the donor.
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Annuities can be funded with cash or stocks. If the annuity is funded with stock or real property that has increased in value, there is an additional benefit because of the partial bypass of capital gains tax. The annuity rate can be as high as 11.3%, depending on the age of the beneficiary or beneficiaries. The rate is fixed and will not change, regardless of current investments or market conditions.
When you transfer cash or assets in exchange for a Gift Annuity, the Federal Government permits you to take an immediate deduction for a portion of the value of the asset that is transferred. This deduction might save you a significant amount in current income taxes.
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A single person, age 70, transfers $10,000 in exchange for a 6.7% Gift Annuity. He receives a charitable deduction of $3,298. If he is in the 28% income tax bracket, this deduction of $3,298 could save him $890 in income tax that year.
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Since a contribution to the Gift Annuity program of 3ABN is considered to be a gift, the donor can claim a charitable deduction on his/her income tax return in the year the gift is made.
A Gift Annuity can be set up for more than one person. The most common type of two-life annuity is an annuity for husband and wife or for parent and child. Under such an agreement, annuity payments are made to one annuitant for his/her life. Upon the death of the first annuitant, the payments continue for the duration of the life of the survivor, and the rate is a little lower.
A donor can set up as many annuities as he/she wants to establish.
A CGA is an irrevocable document. This means once it is executed, it cannot be changed or revoked.
You may fund a CGA with as little as $5,000 for a single-life and $10,000 for a two-life.
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"Those who are faithful stewards of the Lord's means will know just how their business stands, and, like wise men, they will be prepared for any emergency." Ellen White, Counsels on Stewardship, p. 327.
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We are eager to assist you in your new plan for faithful stewardship.
Leonard and Rita Westphal
3ABN Stewardship & Trust Services
P.O. Box 907
Loma Linda, CA 92354
(909) 796-7800
(800) 886-4800
Fax: (909) 796-8611
E-mail: trustservices@3abn.org
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