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Gift annuities
Charitable gift annuity—a gift worth planning
A charitable gift annuity is a simple contract between you and Oregon Food Bank. You transfer cash or marketable securities to OFB. We agree to provide you with fixed payments for the rest of your life.
A lifetime of income
Besides a lifetime of generous income payments, you will also receive:
- an income-tax charitable deduction—usually about one-third the amount of the gift—in the year you make the gift,
- the security of fixed payments that aren't dependent on financial markets,
- quarterly payments, backed by OFB's assets, that are partially tax free,
- satisfaction in knowing that you have made a significant gift to Oregon Food Bank.
Establish a charitable gift annuity for any amount of $5,000 or more ($10,000 for two people). There's no upper limit. Typical gift annuities are $25,000 to $50,000.
If you establish a gift annuity with appreciated securities, your capital-gains tax will be less than if you sold the securities.
Example
Julia, 80 years old, owns $20,000 in a credit union certificate of deposit earning 3.93 percent. When the CD matures, she donates the cash to fund a charitable gift annuity for OFB. Based on her current age, she will receive an annual lifetime income of 8 percent of the value of the gift.
She will receive her annual annuity of $1,600 per year in quarterly installments of $400. Of the annual $1,600, only $476.42 is taxable income during the first 9.4 years.
Julia will qualify for an income-tax deduction of
$9,056 for the year she makes the gift. If she needs to, she can
spread out the deduction over the next five years.
Consult your tax or financial advisers before establishing a charitable gift annuity. If you don't have your own advisers, we can provide a referral for a confidential personal consultation.
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