Frequently Asked Questions - Gift Annuities
Q. How do gift annuities work?
A. Under the terms of a gift annuity, you make a charitable
gift of cash securities, or other
appropriate property. Gift annuities can
be established for one or two lives. The recipient(s)
receive generous fixed payments for life. The frequency and
amount of payments are determined
at the time the gift annuity is funded.
The payments will never change and are designed to
continue regardless of how
long you and/or other recipients live.
Q. How is the amount of the annuity determined?
A. Gift annuities rates are set by the American Council on Gift Annuities
and are based upon the
age of the donor(s) at the time the gift annuity is
established.
Q. Once I have established a gift annuity, can I get the
principal back if I need it?
A. No. A gift annuity agreement must be a permanent transfer
in order to quality for the attractive
tax benefits that result from making your
gift in this way.
Q. Can a person add additional funds to a gift annuity once it
has been established?
A. No, each gift annuity is specific to the age of the income
beneficiary at the date of the gift.
It is possible to establish an
additional gift annuity.
One donor has 15 gift annuities through the UM
Foundation!
Q. Can my church establish a gift annuity?
A. No. Life-income gifts (gift annuities) are for
individuals and couples, not institutions.
Q. What is the minimum
required to establish a gift annuity?
A. A minimum of $5,000.00 is required to establish a gift annuity.
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