You can receive fixed payouts for life and help Catholic Extension to continue strengthening poor faith communities for years to come.
If you are thinking about this type of gift, we recommend consulting with your financial advisor and with Catholic Extension to select an option that is right for you.
Charitable Gift Annuity
You (or a loved one) can receive an attractive income for as long as you live and make a lasting impact on poor communities of faith across the country.
Benefits to you:
- Receive fixed payouts for life at an attractive rate.
- Get an immediate income tax deduction for a portion of your gift (if you itemize).
- Schedule payouts to fit your needs.
- A portion of each annuity payout will be tax-free (through life expectancy).
- Ability to provide financial support for a loved one that is age 55 or older.
- Your gift is removed from your taxable estate.
- Make a lasting impact on generations to come.
Here’s how it works:
- You make a gift to Catholic Extension.
- Receive fixed payouts for the rest of your life (and a portion of the payout is tax free).
- What remains after your lifetime will build faith, inspire hope, and ignite change – now and for future generations.
Payout rates are based upon your age at the time you establish the charitable gift annuity. For example, if you were to fund a charitable gift annuity of $25,000, depending on your age, you would receive:
|If my age is…||69||75||81||86||90|
|My payout rate will be…||5.4%||6.2%||7.5%||8.5%||9.5%|
|My annual payout will be…||$1,350||$1,550||$1,875||$2,125||$2,375|
Deferred charitable gift annuities allow you to postpone the first payout to a date of your choice. At the time of your gift, you still receive an immediate tax deduction, but you can choose to defer the start of income payouts you receive from Catholic Extension.
Many of our supporters like this option because it allows them to support and strengthen Catholic communities in the poorest regions of our country and set aside funds to be used at a future date, such as retirement years.
Charitable Remainder Trust
You can receive income for life and reduce your taxes while supporting Catholic Extension by transferring cash, securities, or other appreciated assets to fund a trust.
The trust then pays fixed or variable income to you or your loved ones for life, or a term of years. Then, when the trust terminates, the remaining funds go to Catholic Extension.
Benefits to you:
- Receive income for life, or a specified term of years, for you or your loved ones.
- Income payouts may increase as the value of the trust assets grow.
- Avoid or defer capital gains taxes on the sale of appreciated assets held in the trust.
- Receive an immediate income tax deduction for a portion of the assets placed in the trust.
There are two main types of charitable remainder trusts:
Charitable remainder annuity trusts distribute a fixed annuity amount each year, and additional contributions are not allowed.
Charitable remainder unitrusts distribute a fixed percentage based on the balance of the trust, which is revalued annually, to you or your loved ones. You can also fund the trust with additional assets as your circumstances allow, which may provide additional income and tax benefits.
The information presented is not intended as legal, tax, or other professional advice. For assistance in charitable estate planning, please consult an attorney for legal advice or the services of a qualified professional.