Vol. 11 No. 1 - Winter 2010

A Gift that Pays You Back: Tom Kuebler Invests in the Lighthouse with a Charitable Gift Annuity

Tom Kuebler, President — The Seattle Lighthouse for the Blind Foundation

I’m Tom Kuebler, member of The Lighthouse for the Blind, Inc. Board of Trustees and President of the Seattle Lighthouse for the Blind Foundation. I’d like to share more about Charitable Gift Annuities: a giving vehicle that has provided benefits for me while supporting opportunities for blind and Deaf-Blind people here in our community.

I attended a Foundation board presentation on the benefits of making a gift annuity and was very impressed by what could be accomplished with an annuity, both for the Lighthouse and for my personal investment program.

A Charitable Gift Annuity (CGA) combines a gift to charity and an annuity. For seniors, annuity rates may be 7-9% or even higher. Since part of the annuity payment is a tax-free return of principle, the gift annuity can provide you with substantial income for life. After the payment has been made for the life of an annuitant, a favorite charity — in my case the Lighthouse — will benefit from the charitable gift.

The CGA allows me to provide a generous charitable gift for the Lighthouse’s benefit while obtaining a current income tax deduction and gaining increased cash flow for my lifetime. The Lighthouse for the Blind, Inc. offers CGAs in partnership with The Greater Tacoma Community Foundation (GTCF). Ultimately, whatever is left is distributed by GTCF to the Lighthouse in perpetuity.

Of course, gift annuities are especially attractive to seniors since the annuity amount is fixed and will not change regardless of current investment or market conditions.

CGAs provide a host of benefits for donors, including:

• The security of lifetime annuity payments for one or two lives
• High rates of return unaffected by fluctuating stock prices
• Immediate income tax deductions
• Capital gains tax savings for gifts of appreciated assets
• Tax-advantaged income
• Choice of immediate payments or larger deferred payments
• Peace of mind that you are ensuring that there will always be opportunities for people with visual disabilities in our community.

The disadvantage, of course, is that the gift amount is permanently gone from your estate. However, if you want to make a gift while also gaining tax benefits and providing cash flow to yourself at the same time, the advantages may far outweigh the disadvantages.

The combination of a tax free income, steady cash flow in excess of 7%, and the financial strength of The Greater Tacoma Community Foundation makes the CGA attractive for your personal investment as well as leaving funds to support opportunities for people with visual disabilities.

This is just a brief explanation of the benefits that are available to you through CGAs, and finding out more is easy.

If you wish to receive a personalized, free Charitable Gift Annuity illustration made just for you, just fill out the enclosed business reply form or contact Major and Planned Gifts Manager Jennifer Moore at her phone (206) 436-2253, or email jmoore@seattlelh.org. We will get your personalized illustration out to you right away!

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