Charitable Remainder Gifts

Charitable gifts can be made to Avenues in a wide variety of ways. An Avenues gift annuity allows you to provide a substantial contribution to our much needed programs and services, while guaranteeing an income to you in return. This may be especially valuable for those persons who expect substantial estate, capital gains or other current and future tax liabilities.

For example, a person who is 75 years old, contributing $5,000 to an Avenues Gift Annuity, would receive approximately a 7.7% rate of return or $385 per year. Of that amount, $164.24 is taxable, and $216.76 is excluded from taxation. The charitable contribution deduction would be $2,313.93.*

*Non deferred annual rates currently range from 4.7% to 11%, depending upon, the age of the annuitants, deferral issues and general market conditions. Specific rates and payments will be provided in each contract.

You would be entitled to an immediate contribution deduction on your income tax in the year in which the Avenues Annuity is purchased. Additionally, a portion of each annuity payment that you receive is tax free income.

When an Avenues Gift Annuity is funded with long-term appreciated property, your capital gains tax is reduced and the reporting of such gains is spread out over the life of the annuity.

These are the basic annuities offered by Avenues:

One-Life annuity covers one person only and ends with the death of the annuitant.

Two-Life annuity will provide payments to the original annuitant; upon that persons death, payments would continue to one named survivor. All annuity payments would end upon the death of the second annuitant.

A deferred annuity can provide a higher rate of return since payments are delayed until a future time. For example, a 45 year old annuitant who makes a $5,000 contribution today and defers payments for 20 years, would receive a 17.2 % rate of return or $860.00 per year, depending upon market conditions and other issues specific to the annuitant. The charitable deduction would be $3081.77.

Upon the expiration of the annuity, any remaining value will continue to provide a benefit for Avenues to Independence, providing a legacy to the generosity of the original donation.

Once created, an Avenues gift annuity is not revocable. The gift is legally transferred to ownership by Avenues and not returnable to the donor or his/her estate.

You can begin the Avenues annuity application process by completing an application. Sending the application does not obligate you in any way, but provides us with the basic information needed to calculate your rate of return, frequency of payment and personal tax benefits. We will send you this information, along with an annuity contract. The contract can then be signed and returned, along with your check or transfer of appreciated assets, that will fund your Avenues Gift Annuity.

See your financial advisor for more information or you may contact Avenues to Independence for additional information. Thank you.