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Charitable Gift Annuities
Gift Example

The example below is based on a factor that changes monthly. Request for a personal gift illustration based on the latest rates.

You hold a stock portfolio that has appreciated well but only pays you 2 percent income per year. You are now 70, and you are concerned that if you sell some of the stock to reinvest in bonds, capital-gains taxes will cut heavily into the proceeds. You want to make a gift of $50,000 to Mercy Foundation North, but you need the income that your portfolio provides.

You are looking for a gift plan that will continue this income and increase it, if possible. Here's a summary of the income and tax benefits from this gift annuity:

Donor (Age 70)  
Amount contributed (stock) $50,000
Cost basis $25,000
Gift annuity rate 5.8%
Annual payments $2,900
Tax-Free portion $1,005
Charitable deduction $18,027
Note: The charitable gift annuity is not the only gift plan that creates cash-flow. Compare its benefits with those of the annuity trust and the unitrust.

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