Rising Rates on Charitable Gift Annuities | The Institute for Creation Research
Rising Rates on Charitable Gift Annuities

Good news for seniors! Due to the robust U.S. economy, the American Council on Gift Annuities recently authorized a broad rate increase—the first since 2012. Seniors age 65 or older living on fixed incomes who need to protect their assets can look forward to higher guaranteed income payments through ICR’s Charitable Gift Annuity (CGA) program.

CGAs are planned giving instruments involving a simple contract between ICR and the donor. The annuities offer additional benefits unmatched by other secure investments such as certificates of deposit, savings accounts, and commercial annuities. In exchange for a gift of cash or stock, ICR provides a partial income tax deduction and a guaranteed fixed-income stream for life, a portion of which is paid out tax-free.

The fixed-income amount is determined by several factors, the donor’s age playing the biggest part. The older you are, the higher the rate—just one of many benefits to growing older! CGAs can be written either for an individual or a couple, and payments can begin immediately or be deferred to some future date. Once the donor passes, ICR applies the remainder of the gift to our ministry.

Charitable gift annuities could be right for people who desire to do any of the following:

  • Increase cash flow over low-interest rates in CDs and other fixed-income investments
  • Avoid capital gains tax on appreciated stock or mutual funds while generating more predictable income
  • Secure fixed-income payments unaffected by fluctuating interest rates and stock prices
  • Gain peace of mind knowing payments for a surviving spouse will continue without the delay of probate
  • Help an elderly parent, sibling, or other person in a tax-advantaged manner

For seniors, CGAs simply provide the highest available guaranteed returns. When both the income tax deduction and the tax-free payment portion are taken into account, the overall effective rate can be considerable. The accompanying chart offers examples based on a $10,000 gift and current applicable federal rates with immediate payments.

If you want to support ICR’s ministry but still need ongoing income, please prayerfully consider a gift annuity. ICR requires a minimum gift of $10,000 and can only offer CGAs to people 65 or older (or deferred until 65). Contact us at 800.337.0375 or stewardship@icr.org and provide your name, birth date, state of residence (not all states qualify), and the gift amount you’re considering. We’ll be happy to design a customized proposal just for you.

* Mr. Morris is Director of Operations at the Institute for Creation Research.

Cite this article: Henry M. Morris IV. 2018. Rising Rates on Charitable Gift Annuities. Acts & Facts. 47 (8).

The Latest
NEWS
Human Genome 20th Anniversary—Junk DNA Hits the Trash
The first rough drafts of the human genome were reported in 2001 (one in the private sector and one in the public sector).1-2 Since then, after...

NEWS
Bacterial Proteins Use Quantum Mechanics
Researchers have found a dimmer switch inside a protein. It tunes the protein’s configuration to take advantage of quantum mechanics during photosynthesis....

SCIENCE IN THE NEWS
Dr. Bill Cooper, ICR’s Adjunct Professor, Now in Glory
Earlier last month on March the 9th, Dr. William R. Cooper, ICR’s Master Faculty (known to ICR-SOBA’s faculty as “Dr. Bill” since...

NEWS
Inside April 2021 Acts & Facts
How will ICR expand biblical creation education this year? How do fossilized fish and land creatures confirm Genesis history? Does recent research support...

ACTS & FACTS
Creation Kids: Bees
You’re never too young to be a creation scientist! Kids, discover fun facts about God’s creation with ICR’s special Creation Kids learning...

ACTS & FACTS
Pleasure in Our Purpose
Eric Liddell was one of the most famous athletes of the 20th century and perhaps the greatest that Scotland ever produced. An international rugby player,...

APOLOGETICS
Beware Sinkholes and Other Failing Foundations
The sudden falling of some Christian schools can be compared to tiankengs, the geological term used for sinkholes that are at least 300 feet deep.1,2...

ACTS & FACTS
The Painted Desert: Fossils in Flooded Mud Flats
Brian Thomas, Ph.D., and Tim Clarey, Ph.D. The Painted Desert stretches across 120 miles of northern Arizona. Its sedimentary rocks show bright...

ACTS & FACTS
Does Recent Research Support Human Evolution?
In 1997, the Institute for Creation Research ran an Acts & Facts article on the lack of compelling evidence regarding our supposed evolution from...

ACTS & FACTS
Building a Perfectly Optimal Flying Machine
For thousands of years, people have dreamed of flying because they witnessed birds and knew it was possible. Inspired by a study of birds, the Wright...