Charitable Gift Annuities

A Charitable Gift Annuity offers the best of both worlds. It’s a way to make a meaningful gift to St. Paul's while providing you with an income for life at the same time!

How Does It Work?

A charitable gift annuity is an irrevocable agreement in which you make an investment of cash or appreciated securities of at least $10,000. In exchange, you will receive annual, fixed payments for life. There are two parts to a charitable gift annuity. The annuity is the part that funds the regular payments to you, and the gift is the part that remains for St. Paul’s after your passing.

How Do You Benefit?

When you establish a charitable gift annuity, you are setting up a steady income source for yourself for the rest of your life. Every year, you will receive a fixed, guaranteed payment from your annuity. How often you receive payments - annually, semi-annually or quarterly - is up to you. For your convenience, you can arrange for the payments to automatically be deposited into a checking or savings account, or you can request a check in the mail. It’s money you can count on. You will know exactly how much you are getting and when.

While a portion of the annuity payment is considered income, part is treated as the return of principal, which is tax-free.

St. Paul’s gift annuities are through the United Church Fund. Established in 1909 to administer funds for retired pastors, the United Church Fund has grown into a comprehensive asset management and investment service, handling the assets of hundreds of churches, conferences, associations and ministries of the United Church of Christ and faith-based organizations. The United Church Fund ensures the safety and security of your gift annuity. The money you invest is put into a reserve fund to ensure that adequate funds are always available.

There are tax benefits to having a charitable gift annuity. When you first establish the annuity, you are entitled to a one-time charitable income tax deduction, which is very helpful if you itemize. Thereafter, a portion of the regular annuity payments you receive will be tax-free. Your estate may also benefit with additional tax savings after your passing, depending on the size of your estate and other key factors.

If you use appreciated securities to fund your charitable gift annuity, the amount you owe in capital gains tax will be reduced.

In addition to the financial benefits, you will also have the satisfaction of knowing that you are supporting St. Paul’s charitable mission with your gift. For more than 150 years, St. Paul’s has been here to support those in need. Your investment helps secure the future. Thank you for believing in what we do and ensuring that our work continues for generations to come.

The Rates

The charitable gift annuity rates are set by the American Council on Gift Annuities. The current rates for 2020 are below, based on a $10,000 gift for a single life and for a two life:

Age Rate Annual Pay-Out Tax Deduction
65 4.7% $470 $3,231
75 5.8% $580 $4,426
85 8% $800 $5,469
65/65 4.2% $420 $1,918
75/75 5% $500 $3,384
85/85 6.7% $670 $4,608

For more information, please contact Dawn Hartman at 724-588-9613 ext.1214. Dawn will be happy to prepare a personalized gift annuity illustration for you, with no obligation.

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Testimonials

John & Dorothy Rust

“At the same time that it’s supplementing our income on a regular basis, we also have the opportunity to help St. Paul’s, an organization that helps others so much.”

Margie Hays

Margie Hays

"I set up a charitable gift annuity at St. Paul's because it goes toward a great cause - helping St. Paul's continue its good work in the community. It also gives me additional income I can count on at a fixed interest rate that you can't find anywhere else."