Together we make a profound difference

Charitable gift annuities

The Charitable gift annuity is now offered by both the Masonic Homes of California and the California Masonic Foundation to provide income for the annuitant and a second beneficiary, if any. The annuitant (the person providing funds to the charity) receives a contract or agreement from the charity which states that the charity will pay the annuitant a fixed income for life (lives) with payments to start immediately or at some set future time. Probate or court involvement is avoided on these funds. The income paid under the annuity is secured by the assets of the charity. See Gift annuity benefits for more details. Please contact us for an illustration of how your gift can produce income for life. A charitable gift annuity can provide tax benefits now and a lifetime income for the donor and a beneficiary if desired.

Deferred gift annutities

A deferred gift annuity is a variation on a gift annuity. A gift is made and the charitable organization promises in return to pay you an income stream that begins on a future date you specify. Since the payments do not begin for a period of time, the fund will grow without withdrawls until the payments begin. With more money in the fund once payments begin, the payments will be larger than with an immediate annuity.

An attractive benefit of this arrangement is that it enables a donor to make a gift now and take a charitable income tax deduction now while in a high tax bracket. Income may be deferred, for instance, until after retirement, when the rate of tax will presumably be lower. Deferred gift annuities are creative ways to delay income to pay for children's or grandchildren's college expenses, supplement your retirement income, or assist with assisted-care living arrangements that may be inevitable.

A flexible deffered gift annuity allows you to pick a range of dates when the annuity payments will begin. For example, you might choose to begin quarterly payments on March 31 of any year not earlier than 2013 or later than 2018. The payment amount will be based on the year you choose in the future to have payments begin. The charitable gift deduction is based on the earliest possible beginning date (2013 in this case) and is taken in the year of the gift, subject to you tax circumstances.

A part of each payment, as in any gift annuity, may be tax-free for a period of years. However, the precise amount of each payment will depend on the tax rules in effect when the payments start.

Charitable gift annuities are the gifts that keep on giving.

 

 

 

 

 

 

 

 

 

Contact Us

Grand Lodge of California
1111 California Street
San Francisco, CA 94108

p: (415) 776-7000

e: memberservices@freemason.org