Deferred-Payment Charitable Gift Annuities
Future Income and a Current Tax Deduction
When you make an irrevocable gift of cash or securities (or sometimes real estate) CMC agrees to make fixed payments to one or two people for life, with payments beginning at a future date that is at least one-year after the gift. Payments are backed by all of the assets of CMC. After the last payment, the remaining account balance comes to CMC to be used as you direct.
Deferred Gift Annuity Plan Options
Specific Starting Date Plan You choose a specific date when payments start.
Flexible Starting Date Plan You choose a range of potential starting dates. Payments may start at any point within the indicated range. Payments may start no sooner than the earliest date in the range, and must start no later than the last date in the range.
How You Benefit:
- Lifetime Income Once payments begin they are payable for life.
- Locked-In Future Income You know in advance what future payments will be.
- Guaranteed Growth Your benefit grows tax-deferred inside the annuity at a guaranteed until payments start.
- Tax-Advantaged Payments A large part of each payment will be tax-free if funded with cash.
- Current Charitable Deduction You are entitled to a current charitable income tax deduction.
Giving Appreciated Securities
A key benefit of a charitable gift annuity is the ability to fund it with a gift of appreciated securities. Your annuity payment will be based on the full fair market value of the donated shares. A portion of the capital gain is completely avoided and the remainder is spread over an IRS-determined term of years.
Giving Appreciated Real Estate
For more information on funding a gift annuity with a gift of real estate, please click on the link at the top of this page.
Taxation of Your Payments
When Funded With Cash A significant portion of the annuity payment will be tax free over an IRS-determined term of years. Thereafter, the entire payment is taxed as ordinary income.
When Funded With Appreciated Securities or Real Estate The taxable portion of the capital gain is spread over an IRS-determined term of years, and converts a portion of the tax-free income into capital gain income. Thereafter, the entire payment is taxed as ordinary income.
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GIFT CALCULATOR
At certain ages, IRS regulations force CMC to offer a lower rate to generate a charitable deduction of at least 10% of the gift amount. If you receive a Fails to Qualify message, contact our office for a qualifying rate.