Charitable Gift Annuities

A Gift Annuity is for you if ...

You want to make a significant gift to us and receive lifetime payments in return;
You want to maximize the payments you receive from your planned gift -- and, you want to lower your income tax on those payments;
You want the security of payments that won't fluctuate during your lifetime;
You also appreciate the safety of your payments being a general financial obligation of the institution.

and a Deferred Gift Annuity is for you if ...

You are in high earnings years, looking for both income tax savings now and an additional source of revenue when you retire.

Immediate Payment and Deferred Payment

A Charitable Gift Annuity is a simple contract providing for our payment to you (and an optional second beneficiary) of a fixed amount for life in return for your contribution. The gift annuity offers you the assurance of payments that will not fluctuate, and that are secured by all the assets of Wasatch Academy. And the minimum gift to establish a charitable gift annuity is low -- a contribution of $???? or more will enable you to share in the benefits of this program.

A charitable gift annuity offers you three distinct tax benefits:

1	You will receive an *income tax* charitable deduction for your gift annuity, based on the full value of the assets you contribute minus the present value of the life-income interest you retain (see the box below for more details.
2	If you fund your charitable gift annuity with appreciated securities, no upfront capital gains tax is payable. Only a portion of your capital gain will be reportable, and the tax will be spread over your annuity payments.
3	Part of each annuity payment will be considered the tax-free return of your principal. This effectively increases the cash flow from your gift annuity, and is not available with other types of life-income gifts.

(The IRS provides that the capital gain and tax-free-payment benefits are in effect during your life expectancy - if you live beyond your life expectancy, the entire annuity payment will be taxed as ordinary income.)

Your gift annuity can start paying you once you make your contribution (an immediate-payment gift annuity), or payments can commence at a later date selected by you (a deferred gift annuity). Deferral allows us to offer you a higher annuity rate and gives you a larger charitable deduction.

Many younger donors create a series of deferred gift annuities over multiple years, jointly timed to begin making payments when they retire. To fund their gifts, they use assets they've already designated for retirement savings. Their deferred gift annuities give them an income tax deduction when they most need it, and an additional source of cash during their retirement years.

Example* Comparison: *Gift Annuity and Deferred Gift Annuity*			*This example is based on a factor that changes monthly. Contact our office for a personal illustration based on the latest rates.
Assumptions:	> Benefactors aged 70 and 68 > Contribute securities worth $20,000
Options	Gift Annuity paying income immediately	Deferred Gift Annuity beginning income in 5 years	Deferred Gift Annuity beginning income in 10 years
Contribution	$20,000	$20,000	$20,000
Annuity Rate	5.8%	7.8%	10.9%
Annual Payment (fixed)	$1,160	$1,560	$2,180
Charitable Deduction	$6,156	$8,221	$10,676
*This example is based on a Federal Discount Rate of 5.0%.

To learn more, Email us, or call us at (435) 462-1400 so that we can assist you.

Charitable Gift Annuity "How it Works"

Back to All Gifts-at-a-Glance

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