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Inside This Issue

Inside This Issue
Market Challenges Affect Estate Plans Too
With IRAs Age Has Its Privileges
Secure Your Retirement Income While Making A Gift

Mission Statement

The American Red Cross, a humanitarian organization led by volunteers and guided by its Congressional Charter and the Fundamental Principles of the International Red Cross Movement, will provide relief to victims of disaster and help prevent, prepare for and respond to emergencies.

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Secure Your Retirement Income While Making A Gift

Stock Prices

In these difficult economic times, many friends of the American Red Cross are looking for alternatives to stock market volatility or low CD rates – or just a safe place to put some of their nest egg.

The charitable gift annuity can meet any and all those needs. Charitable gift annuities are, in effect, a partnership with the Red Cross. In exchange for an asset, such as appreciated stock or a gift by check, the Red Cross promises to pay you and/or any other individual you may name a guaranteed amount each and every year for the rest of your life. The donor also receives a charitable deduction, and, since part of the distribution you receive is considered a return of your own funds you can receive a substantial amount tax-free!

You have the added flexibility of deciding whether you would like to receive your payments quarterly, annually, or even monthly to supplement retirement income.

A charitable gift annuity might appeal to you if:

  • You prefer the security of payments that will not vary with the ups and downs of the economy
  • You like the idea of receiving a highly competitive payments made even more favorable by the opportunity to receive a portion tax-free
  • You can use a federal charitable deduction that can often be as much as 50% of the value of their gift.
  • You wish to provide support to the Red Cross while enjoying the security of payments you or a loved one cannot outlive

The minimum age for gift annuity recipients is 65, but younger donors often establish gift annuities for older relatives, which helps provide needed financial support for the older relatives, plus charitable deductions for the donors.

An important gift annuity option for “baby boomers” is to set up deferred payment gift annuities as a supplement to their other retirement savings arrangements. Deferred gift annuities offer a substantial, fixed income that starts after you retire, plus considerable income tax savings right now – and the satisfaction of assisting the Red Cross.

The recent downturn in the stock market took a bite out of most retirement savings plans. Deferred gift annuities can help rebuild retirement nest eggs in a way that won’t be affected by future turmoil in the stock market. If you are interested in either immediate payment or deferred payment gift annuities, please contact our office. We can provide you with complete information, including one-life and two-life payout rates.

You, too, can establish a charitable gift annuity with the American Red Cross for as little as $5,000 and enjoy the security of guaranteed income for life and the satisfaction of establishing a gift that will advance the Red Cross mission. To learn more, contact the Gift Planning Office at 1-800-797-8022, ext. 5, or log on to

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© Copyright 2005 The American National Red Cross. All Rights Reserved.

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The articles in the issues of the Legacy newsletters are for general illustration purposes only. Information, Gift annuity and tax rates were current as of the time of publication. There can be no guarantee that such information will continue to be accurate in the future. Interested Donors should check with the Gift Planning Office for current rates and deduction amounts before completing their gifts. Calculations of tax deductions will vary based on applicable federal discount rates, which change on a monthly basis. The American National Red Cross is not engaged in rendering legal or tax advisory service. For advice or assistance in specific cases, the services of an attorney or other professional advisor should be obtained. Certain links in this site connect to other Web sites maintained by third parties over whom the American National Red Cross has no control. American National Red Cross makes no representations as to the accuracy or any other aspect of information contained in other Web sites.