1. You and/or your designated beneficiaries receive guaranteed income for life, paid quarterly and backed by the assets of the Community Foundation of the Jewish Federation of Orange County.
   
   
2. This income may be used to supplement your retirement plan.
   
   
3. Cash or appreciated securities may be used to establish your Charitable Gift Annuity. In using appreciated securities, you may reduce capital gains taxes.
   
   
4. You may qualify for an immediate income tax deduction in an amount based on the annuitant's and beneficiaries' ages and the amount you pay to establish your Charitable Gift Annuity.
   
   
5. You may reduce estate taxes by removing assets from your estate.
   
   
6. The remainder of the Charitable Gift Annuity will establish an endowment fund within the Community Foundation that will benefit the charity or charities of your choice, both Jewish and secular, now and for generations to come.
   
   

How to Create a Charitable Gift Annuity

A Charitable Gift Annuity is established by signing a simple agreement provided by us. Then a gift of cash or marketable securities of at least $10,000 is transferred to the Community Foundation. That is all you have to do. A portion of the assets you transfer is treated as tax deduction for a charitable gift.

The Community Foundation guarantees a lifetime stream of fixed annuity payments to the income beneficiaries chosen by you. You may designate one or two income beneficiaries. It can be yourself, your spouse or even a non-family member.

You may establish as many annuities as you wish, at the same time or over a period of years, with the same or different income beneficiaries and in varying amounts.

Tax Benefits of a Charitable Gift Annuity

No matter when you schedule your payments to begin, you qualify for an immediate income tax deduction for a portion of your gift in the year that you make your gift. The older the annuitant is when payments begin, the larger the tax deduction will be. If you do not need the entire income tax deduction in the current year, you can carry it forward up to five years. If you established your Charitable Gift Annuity with marketable securities, you can also reduce and defer capital gains taxes.

How is Annual Income Determined?

The annuitant's age and beneficiary's age when you establish the Charitable Gift Annuity is one factor. The value of the assets you transfer is the other factor.

When Do Payments Begin?

If the annuitants are 65 or older when the Charitable Gift Annuity is created, quarterly payments can begin immediately.

If you want the income from your Charitable Gift Annuity to go to someone currently aged 45 to 65, you can create a Deferred Charitable Gift Annuity. With this type of annuity, the annuitant may begin drawing payments any time after his/her 65th birthday. The younger the annuitant is when a Deferred Charitable Gift Annuity is established, the larger their quarterly payments will be.

One Community Foundation donor uses Charitable Gift Annuities to secure income for his son's retirement. The opportunities with this program are exciting.

Please contact Barry Friedman, our Director of Development, for a personalized look at how a Charitable Gift Annuity can be of significant benefit to you.