THE GIFT PLUS ANNUITY

The practice of transferring assets to a charity has a long history. According to a memorial plaque in England's Winchester Cathedral, in 1321 Sir William de Lillebone transferred lands to the Priory and its monks and received from them an annuity worth about ten pounds a year.



WHAT IS A GIFT PLUS ANNUITY?

Put in its simplest terms, a gift plus annuity is an arrangement under which a donor transfers a certain sum to a charity in exchange for fixed, guaranteed payments for the life of the donor and/or another person, or, alternatively for a specified term of years.

Because the church re-insures the annuity with a life insurance company it is called a Gift Plus Annuity.

HOW DO GIFT PLUS ANNUITIES WORK?

Here's how it works. In exchange for your gift, the Anglican Church (either the national church or the diocese) buys you a lifetime annuity from a licensed insurance company.

The amount of your annuity depends on your age and the size of your contribution but the rate will usually be quite higher than what you get from your current investments AND that rate is guaranteed.

Your annuity payments will continue as long as you live, no matter what happens to the economy or to interest rates. If you are married, you may choose an annuity which continues as long as either spouse is alive.

Your gift annuity brings you another bonus: depending on the age at which you take out the annuity, a part or all of each payment to you will be income tax free. In some cases, there is also a charitable donation receipt that will result in a tax credit.

Some examples….

Ralph Cramden, 70, contributes $100,000 for a gift annuity with the Anglican Diocese of Niagara to support his local parish. He gets an annuity of $6,000 (6.0 per cent) a year for life, entirely tax-free, and a donation receipt for $6,824. The cost to the Church,to purchase the annuity from the insurance company is $54,161, with the remaining $45,839 immediately available for the ministry of the Church or for investment for future allocation. The annuity payments are guaranteed for a minimum of ten years so if Ralph were to die at age 72 the Church would receive annuity payments from the insurance company for eight additional years, thereby adding $48,000 to the original gift received.

Susan Jones, 80, contributes $30,000 and gets a tax-free lifetime annuity of $2,550 (8.5% return) and a donation receipt for $2,970.

The information in this brochure does not constitute legal or financial advice and should not be relied upon as a substitute for professional advice. The Anglican Church encourages you to seek professional legal, estate planning, and financial advice before deciding on a course of action.

GIFT PLUS ANNUITIES ARE VERY POPULAR AMONG DONORS

Over the past three decades in Canada gift plus annuities have become one of the most popular ways for donors to contribute to their favourite charities during their lifetimes. They are especially popular among seniors.

The reasons are many. Annuity payments are usually at much more attractive rates of return thereby improving your cash flow. They are guaranteed and therefore not vulnerable to economic downturn and market fluctuations. Many seniors worry whether their investments will last as long as they do. A gift plus life annuity gives you that peace of mind while allowing you to support the church and see your assets at work in the ministry of the church now.

Many donors find gift plus annuities so beneficial that they regularly make this type of gift to the church.

YOUR GIFT TO THE ANGLICAN CHURCH

What is left of your contribution after the church has paid for your annuity becomes your gift to the church. You can decide how you want that gift to be used. Would you like it used now or invested? Used in your local parish, the ACM Foundation of Niagara Diocese, the National Church?

TRULY MAKE AN IMPACT ON MINISTRY…

We know from talking to donors that you want your gift to truly make an impact on the lives of the people in your parish or community. Charitable Gift Annuities create that opportunity as donors are able to give significantly larger gifts than they might otherwise be able while protecting your cash flow. Of course, we will work with you to ensure your gift is dedicated to ministry projects dear to your heart.
FOR MORE INFORMATION…
If you would like more information on gift plus annuities, any other planned giving instrument, or leaving a bequest to the Anglican Church please contact:

Please contact your Parish Planned Giving Representative

OR

Director of Stewardship and Financial Development,
Anglican Diocese of Niagara
Ph. (905) 527-1316, ext. 360
click here to send an email.