Spring 2008

Make a Charitable Gift Annuity to the Seattle Lighthouse for the Blind Foundation and Receive Income for Life

Would you like to make a charitable gift that gives you a current income tax deduction, lets you avoid some capital gains tax, and increases your income for life? Then a charitable gift annuity may be the right giving arrangement for you.

The Seattle Lighthouse for the Blind Foundation, in partnership with the Greater Tacoma Community Foundation, offers charitable giving annuity arrangements to donors interested in benefitting the Lighthouse while receiving a stream of tax free income at the same time. A charitable gift annuity is a contract under which a charity, in return for a transfer of cash, marketable securities, or other assets, agrees to pay a fixed amount of money to one or two individuals for their lifetimes.

Charitable gift annuities are known as “life-income gifts” because they are ways for donors to make a gift to charity while also receiving income for themselves or others. These special gifts can also have significant tax benefits for the donor, helping to avoid income and capital gains taxes.

Benefits of Charitable Gift Annuities

Charitable gift annuities provide fixed income for life. Gift annuities are ideal for providing supplemental retirement income. They are unaffected by interest rates or fluctuating stock prices.

Charitable gift annuities have no contribution limit. Unlike qualified retirement plans, gift annuities have no contribution limit, and the donor receives income and capital gains tax benefits.

Charitable gift annuities can be paid to one or two donors. Annuities ensure continuous income payments to a surviving spouse without probate hearings.

Charitable gift annuities are tax advantaged. The donor receives an income tax deduction. The donor may deduct up to 50% of adjusted gross income for cash gifts, and up to 30% of adjusted gross income for gifts of other assets, in the first year; the excess may be carried forward for up to five additional years.

Annual payments are tax-advantaged. The annual payments are taxed favorably, and a portion of payments from cash gifts will be tax free for a term of years. If a gift is made using appreciated property such as securities or real estate, the donor avoids tax on a portion of the capital gain.

If you are interested in learning more about charitable gift annuities to the Seattle Lighthouse for the Blind Foundation or if you would like a personalized charitable gift annuity illustration, please call Major and Planned Gifts Manager Jennifer Moore at (206) 436-2253 or email jmoore@seattlelh.org.

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