Charitable gift annuities are generally arranged by donors who are at retirement age.  But gift annuities also may be appealing to sons and daughters of retirees who want to help both the American Red Cross and their parents, as well.  Here’s an example:

Dr. Christy sends a monthly $500 check to her mother, age 85.  Dr. Christy wants to keep helping her mother, but would also like to reduce her income taxes and make an important gift to the Red Cross.  She could transfer $75,000 in exchange for a charitable gift annuity that would pay her mother $500 a month for her life.  (A somewhat larger amount would be required to fund a gift annuity that makes survivor payments to Dr. Christy).  Dr. Christy receives a charitable deduction of nearly $43,000 and achieves personal goals, as well.  Gift taxes can be avoided by including a special clause in the gift annuity agreement.

Note:  Charitable deductions can be especially helpful to friends who experience a year of unusually high income, as when they convert to a Roth IRA.  We would be pleased to provide you with complete tax and financial illustrations for charitable gift annuities or any other gift arrangements.

Request a free, no obligation, charitable gift annuity illustration, contact the Gift Planning Office at 1-800-797-8022, ext. 5, plndgiving@usa.redcross.org or log on to www.redcrosslegacy.org.