Charitable Gift Annuity

Are you concerned about having enough income for your retirement? Consider funding a Charitable Gift Annuity to supplement your income. A Charitable Gift Annuity is a contribution to United Way that also directly gives back to you and/or a loved one at the same time.

Charitable Gift Annuities basically create a contract between you and United Way. In exchange for your gift of cash, appreciated securities or other assets, United Way makes payments to one or two individuals you select in a guarantee fixed sum each year for life. You may enjoy this option if you are looking for the security and certainty of consistent income for yourself or another for your lifetime(s).

When you contribute cash and/or appreciated marketable securities to United Way of Greater Portland, we guarantee that you and/or a beneficiary of your choice will receive a predetermined fixed income for life. The amount of the fixed income you receive is determined by your age when you make the gift – the older you are at the time of the gift, the greater the fixed payments you will receive. In most cases, a portion of the annuity payments are considered tax-free income, and if you transfer appreciated securities you have held for more than 12 months, you may also reduce and defer the payment of capital gains taxes and take a charitable deduction for the full fair market value of the stock.

UWGP's Charitable Gift Annuity is backed by United Way of America, designed for people over the age of 65, and provides a partial tax benefit to you annually. It requires an investment of $10,000.

Take a look at a few examples:

Example 1: Arthur is 65 years old and makes a gift of $50,000 to United Way to establish a Charitable Gift Annuity. In return, United Way promises to pay Arthur 6%, or $3,000, a year for life.

Example 2: Arthur and his wife Karen, both aged 65, make the same gift of $50,000. In return, the United Way promises to pay 5.6% or a total of $2,800 a year to them jointly, and will continue to do so for the rest of their lives.

A Charitable Gift Annuity is a great tool for helping you achieve personal financial and philanthropic goals and provides meaningful support for United Way of Greater Portland.

Have you already made a planned gift to United Way? Need more information?
Please contact our Resource Development department at 207.874.1000. We would like to express our appreciation for your gift or answer any questions you may have about charitable gift annuities.

 

This information is solely for educational and illustrative purposes and is not to be considered legal, financial or tax advice. For specific recommendations, please consult your attorney, accountant or financial advisor. United Way of Greater Portland encourages donors to explore
all aspects, opportunities, costs and alternatives associated with gift planning decisions.