A charitable gift annuity is a simple contract established between a donor and the Community Foundation by which a portion of a gift of cash or marketable securities transferred to the Community Foundation establishes an endowed fund to benefit a charity of the donor’s choice. The remainder is returned to a designated recipient as scheduled income payments.
Q: What are the features of a Charitable Gift Annuity?
Like all annuities, a charitable gift annuity provides guaranteed income during the life of the beneficiary.
In addition, the charitable gift annuity provides:
– a tax benefit of a charitable deduction to the donor.
– security through the community foundation’s promise to pay (the promise to pay backed by the foundation’s assets).
– a donation to the charity after annuity payments end.
Q: How does a Charitable Gift Annuity work?
A donor can open a charitable gift annuity with a donation of assets other than cash (ex. stocks) and then signing an annuity contract that provides lifetime payments to one or two persons.
By establishing a charitable gift annuity, your donation will assist the charity of your choice in achieving its mission. You also may choose to have your gift endow a specific cause. Our flexibility ensures you the joy of giving and that the spirit of your funds will be honored and preserved in perpetuity.
Q: What are the options when the Charitable Gift Annuity ends?
The remaining portion of the charitable gift annuity remains with the charity as a donation – options with the Kenosha Community Foundation:
– creating a new named endowment.
– directing the funds to a Field of Interest fund (Women’s Fund, Arts Fund) managed by the Foundation.
– directing the funds to a scholarship fund or organizational endowment managed by the Foundation.
– supporting the Foundation directly with a gift to the Howard J. Brown Fund for the benefit of the Kenosha Community Foundation – charitable gift annuities that benefit the Community Foundation are used to initiate programs, coordinate resources and support organizations that enhance education, community betterment, arts and culture, health and human services.
How a Charitable Gift Annuity Works