Introducing Charitable Gift Annuities

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1 Introducing Charitable Gift Annuities GIVE. RECEIVE. RECEIVE. RECEIVE. Giving through a Charitable Gift Annuity (CGA) allows you to arrange a generous gift to your community, while providing you with a new income source you can count on for the rest of your life. GIFT OF ASSETS REMAINDER TO THE FOUNDATION GENEROUS INDIVIDUAL(S) GIFT ANNUITY TO SUPPORT A CAUSE OR CHARITABLE ORGANIZATION OF YOUR CHOICE INCOME TAX DEDUCTION AND FIXED INCOME FOR ONE OR TWO PEOPLE

2 Introducing Charitable Gift Annuities (continued) HOW IT WORKS: You make a gift of cash or appreciated securities to the Lancaster County Community Foundation.* You immediately begin to receive annuity payments with a deferred charitable gift. The contract is backed by the general assets of the Community Foundation. You continue to receive a stream of income that is fixed, regardless of market conditions.** We handle all administrative details, including issuing your annuity payments. At the end of your life, we set up a permanent charitable fund in your name at the Community Foundation that benefits the cause or charitable organization of your choice. The fund and all future earnings from the fund is a permanent source of community capital, helping to do good work forever. Call to see how easy it is to establish a charitable gift annuity. * You must be at least 60 years of age to establish a CGA. Minimum to establish a CGA is $0,000. **All rates determined by the American Council on Charitable Gift Annuities;

3 How a Charitable Gift Annuity Works CGA fund holders: Jim and Sally Saxton SOLUTIONS FOR REAL LIFE When 70-year-old Beth Segal learned that her $5,000 -year CD would earn only.75 % on its renewal, she looked for a new solution. Her CPA suggested a Charitable Gift Annuity (CGA) at the Community Foundation. Through a CGA, she increased her yearly income by over $,000 for the rest of her life and received a charitable income tax deduction of more than $8,500.* Best of all, she knows that her gift will benefit the community after her lifetime. The Community Foundation uses rates established by the American Council on Gift Annuities. Rates for those 60 and older generally range from. to 9 percent. Other factors affecting the size of payments include: The value of the contribution. The number of annuitants. Whether or not you choose to defer payments. THE GIFT THAT KEEPS GIVING In addition to supporting Lancaster County, income from your CGA may add up to more than the interest and dividends you earned from holding the assets. You can use this income to supplement your own lifestyle, or that of someone else: a spouse, sibling, a dependent parent, or a friend. A CGA reduces estate assets and may reduce estate taxes. Plus, it s easier to set up than a charitable trust and is backed by the resources of the Community Foundation, a trusted steward of charitable assets since 9. *All rates determined by the American Council on Charitable Gift Annuities; Rates are generally updated once or twice per year. Scenario based on 0 rates.

4 FAQ: Charitable Gift Annuity Questions Answered WHAT IS A CHARITABLE GIFT ANNUITY (CGA)? A Charitable Gift Annuity at the Community Foundation lets you support the causes you care about and receive guaranteed income for life. A CGA is a contract between you and the Community Foundation that pays you an annual source of income. When the contract ends, the charitable gift annuity establishes a permanent fund at the Foundation to benefit the causes or organizations you have chosen. WHY CHOOSE A CGA? A CGA is less complex than a trust and much easier to establish. It is a win-win scenario. It s a great way to support yourself, your loved ones, and your favorite charities at the same time. ARE THE PAYMENTS GUARANTEED? Yes, the payments are backed by the integrity and assets of the Community Foundation. IS THERE A MINIMUM AMOUNT REQUIRED TO ENTER INTO A CGA CONTRACT? Yes, $0,000. Donors must be a Pennsylvania resident at the time of the CGA contract execution. HOW ARE THE PAYMENTS CALCULATED? The payments are based on the amount of the gift to the Community Foundation, the age of the annuitant(s) and the current gift annuity rate published by the American Council on Gift Annuities. Gift annuity rates generally range from about. 9 percent for one person over 60 years of age. Basically, the older the annuitant, the higher the rate.

5 FAQ: Charitable Gift Annuity Questions Answered (continued) IS THERE A MINIMUM AGE REQUIRED? The Community Foundation requires that the annuitant(s) be at least 60 years of age. WHAT IS A RESIDUUM? The residuum is the amount of money remaining that can be directed to a charitable cause after the charitable gift annuity stops paying an individual. WHAT ARE THE TAX BENEFITS? There are many different ways to structure the annuity contract that each result in specific unique tax benefits. In most cases, the donor receives an immediate tax deduction for the estimated residuum. There may be portions of the annuity that are tax free or that will be taxed at a capital gains rate. We can quickly prepare detailed explanations of potential tax benefits for interested donors to review with their tax and/or legal advisors. CAN A CGA BE USED TO ESTABLISH A FUND AT LCCF? Yes. In addition to the option of having the residuum directed to an existing fund at the Community Foundation, you may direct the residuum to establish a new endowed fund at the Community Foundation to support causes you care about. The residuum from a CGA cannot be sent directly to a charity outside the Foundation. HOW LONG DOES IT TAKE TO ENTER INTO A CGA CONTRACT? Donors can execute our simple CGA contract in a single meeting. This may be accomplished at the donor s convenience. We are happy to discuss charitable giving options and provide printed scenarios that will estimate the tax benefits to you. However, the Foundation does not offer any legal, tax, or financial advice. Please consult your lawyer or professional advisor. The Community Foundation does not give professional tax or legal advice; please consult a tax advisor and/or attorney about your specific situation.