Charitable Gift Annuities Earns Great Returns

Where can a person turn today to get the best return for their dollar providing a high fixed annual income stream with a generous charitable tax deduction and knowledge that their investment will benefit their favorite charity? A charitable gift annuity at Tampa Orlando Pinellas Jewish Foundation, Inc.

“The gift annuity made sense from an investment and tax stand point. I enjoy a higher rate of return than a CD or money market would offer. I’m getting a tax deduction for the gift. Most of all, I’m ensuring that my charitable interests in this community will continue long after I’m gone,” says Tillie Lefkowitz.

Sheldon and Linda Aronoff love the idea of giving to charity and earning some income from their philanthropic gift. That is the reason they established a charitable gift annuity.

Tillie Lefkowitz, pictured with her late husband Ernest, established a charitable gift annuity with TOP Jewish Foundation. “The gift annuity made sense from an investment and tax stand point. I enjoy a higher rate of return than a CD or money market would offer. I’m getting a tax deduction for the gift. Most of all, I’m ensuring that my charitable interests in Orlando will continue long after I’m gone,” she says.

“Where else can a person turn today to get the best return for their dollar providing a high fixed annual stream of dollars that they will use to support their favorite charities annually. In addition, the charitable gift annuity will provide for a generous charitable tax deduction and knowledge that their investment will benefit their favorite charity,” explains Sheldon Aronoff who recently retired from Morgan Stanley where he was a financial advisor for almost 30 years.

“We are both retired and know what we need to live comfortably. We wanted to make a gift that will make a difference. With the charitable gift annuity we get a win with the tax deduction and a win for ensuring our favorite charities will benefit. We love the idea of giving and getting. Giving charitably never felt so good,” exclaims Linda Aronoff.

The current period of low interest rates makes charitable gift annuities more appealing than ever. A charitable gift annuity is the oldest and most popular gift arrangement that can offer a donor, or one or two beneficiaries a donor designates, with a fixed stream of income for life. The rate in effect when an annuity is acquired never changes. It is guaranteed for life. Viewed in the light of current market conditions, these rates are very appealing.

Payment rates will depend upon the age of the beneficiary(ies) at the time of acquisition. The older the beneficiary(ies) is at the time of the gift, the greater the fixed income amount. The payment may also continue after death to the donor’s surviving spouse. The chart below outlines what $100,000 a charitable gift annuity would provide if the donors met the following age criteria:

Note: The rates are somewhat lower if the amount is for two annuities – payable for the duration for both lives.

We are both retired and know what we need to live comfortably. We wanted to make a gift that will make a difference. With the charitable gift annuity we get a win with the tax deduction and a win for ensuring our favorite charities will benefit. We love the idea of giving and getting. This gift provides,” explains Linda and Sheldon Aronoff.

Many charitable-minded people like Tillie Lefkowitz and Linda and Sheldon Aronoff want to give more to their favorite charities but live on fixed incomes and can't afford to donate income-producing assets. With a TOP Jewish Foundation charitable gift annuity, a person can make a significant gift and still retain lifetime payments. In some cases, one can even increase their annual cash flow. In fact, TOP Jewish Foundation finds that some people obtain additional annuities, as they get older because of the higher payment rates.

A person should not select a gift annuity merely for a higher return, since the annuitant is irrevocably committing the principal to the TOP Jewish Foundation. The remaining principal, or residue of the annuity left after the donor’s death, is used to create a charitable fund to support one’s favorite charitable organization or cause like the synagogue, Jewish Federation or university.