What is A Charitable Gift Annuity?
A charitable gift annuity is a life income plan that allows you to give a gift to support the work of Home of the Innocents while still receiving an annuity income for your lifetime. A charitable gift annuity is a contract between you and Home of the Innocents. You are making a gift to Home of the Innocents, and you are purchasing a fixed income for life. You irrevocably gift the amount to the Home, and the Home in return agrees to pay you a fixed payment for life. The charity's promise to pay is backed by all of the assets of the organization. Following your lifetime, the remainder portion of your gift comes to the Home to help us fulfill our mission.

How Do You Determine the Amount of the Annuity Payment?
The Uniform Gift Annuity Rates, which are recommended by the American Council on Gift Annuities (a voluntary association of 25 members representing over 700 Gift-Annuity-issuing agencies), have been computed with the intention of producing, if possible, a remainder interest to the charity of approximately 50% of the original gift amount. For this reason, the rates are generally lower than what you might find offered by an insurance company (where there is no gift involved). The rates are based on actuarial studies of the life expectancy of gift annuitants and on the expected rate of income to be earned on invested reserve funds.
The annuity payment is based on your age (and the age of any other annuitant you might name) the day you make the gift, and on the amount of your gift. Following your lifetime, the remainder of your gift becomes available for the use of the Home of the Innocents. Payments may be made in annual, semi-annual, quarterly or monthly installments. The timing of your installments may affect the amount of your payment.

Why Would I Want A Gift Annuity?
There are many benefits to entering into a gift annuity contract with Home of the Innocents, not the least of which is potential favorable tax benefits and the joy of making a gift that you know will provide support to the mission of the Home following your lifetime. Charitable gift annuities make it easier to make a substantial gift during your lifetime, because you will be receiving a fixed income stream for life. Typically, part of each payment that you receive will be tax-free, increasing each paymentís after-tax value. You may qualify for a federal income tax charitable deduction for the fair market value of your gift, minus the present value of the annuity payments that you are estimated to receive over your lifetime.
Long-term (held for more than a year) appreciated assets, such as stock, that are not currently paying a dividend are an excellent choice for using to acquire a gift annuity. You will avoid paying the capital gains tax on the transfer of those assets, as they are being irrevocably gifted to charity, and you will begin to receive an income stream in the form of annuity payments.

What Else Should I Know?
You must understand that your gift to Home of the Innocents through a charitable gift annuity is irrevocable - that is, you can't change your mind once the gift is made.
Once you have entered into the gift annuity contract with the Home, the amount of your payments will always remain the same. You can set up new gift annuities at any time.
A gift annuity contract can be written to pay you alone, or to pay you first, and then your spouse, or it may pay any two persons you select. Payments can be made either to one annuitant for their lifetime and then to a second annuitant for their lifetime, or they can be made jointly to both annuitants and then to the survivor. Due to the longer payment period, two-life annuity rates are slightly lower than those for a single life.

The Home of the Innocents, Inc. does not render legal, tax or other professional advice. You should always seek advice from an attorney and other professional advisors when considering making a charitable gift. Please contact Lisa Cobb, Major Gifts and Planned Giving Manager, at 502.596.1021 or email us for more information.