Charitable gift annuity rates on the rise

05/30/2018

Areas to Support

With exciting news about increased charitable gift annuity rates, effective July 1, 2018, this may be a good time to boost your retirement income, while simultaneously supporting Banner Health Foundation or Banner Alzheimer’s Foundation with a charitable gift annuity.

How it Works 

The concept is simple: Make a donation using cash, marketable securities, or other assets, and receive stable payments from the Foundation for as long as you live. Make your gift on or after July 1 to take advantage of the highest gift annuity rates in over six years.

How You May Benefit: An Example

Under the current rate schedule, Barbara, 72, transfers $25,000 in exchange for a charitable gift annuity. She will receive annual payments of $1,350, a rate of 5.4 percent. Instead, if Barbara waits to make her gift on or after the new rate schedule is in place on July 1, the same gift amount will provide $1,450 in annual payments, reflecting a 5.8 percent rate. That’s a payout rate increase of approximately 7.4 percent.

In addition to the opportunity to increase your retirement income as you help shape our future, gift annuities offer you numerous tax benefits, including:

  • A partial income tax charitable deduction now for your gift when you itemize.
  • Part of each payment is income tax-free throughout your estimated life expectancy.
  • Capital gains tax savings on appreciated property you donate.

The table below indicates the current and new comparative rates for one life and two lives.

Rates for an Individual (One Life)

Age

Current Rate

Rate for Gifts Made
On or After July 1, 2018

60

4.4%

4.7%

65

4.7%

5.1%

70

5.1%

5.6%

75

5.8%

6.2%

80

6.8%

7.3%

85

7.8%

8.3%

  90+

9.0%

9.5%


Rates for Two Lives

Age

Current Rate

Rate for Gifts Made
On or After July 1, 2018

60

4.0%

4.3%

65

4.4%

4.7%

70

4.8%

5.2%

75

5.3%

5.7%

80

6.1%

6.6%

85

7.3%

8.0%

  90+

8.8%

9.3%

 

You are Our Future

We would be happy to send you a free, no-obligation illustration showing you the increased benefits you can receive from a charitable gift annuity if you make your gift on or after July 1, 2018. Your personalized illustration will include your potential income tax charitable deduction and secure, tax-favored payments to you, and another person if you choose, for life. Contact Pat Elder, Chief Development Officer, Planned Giving, or call 602.747.4485 to get started.

VISIT THE PLANNED GIVING CENTER