A charitable gift annuity is a contract between a donor and Lund. As a donor, you make a sizable gift to Lund using cash, securities or possibly other assets. In return, you become eligible to take a partial tax deduction for your donation, plus you receive a fixed stream of income from Lund for the rest of your life.
Lund’s charitable gift annuity arrangements are coordinated through the Vermont Community Foundation. The size of your payment is determined by many factors, including your age(s) when you set up the charitable gift annuity. (For example, younger donors will typically receive more payments but they’ll be smaller.) The amount is fixed and will never fluctuate or adjust for inflation. But it’s also guaranteed, backed by the Vermont Community Foundation’s entire assets, not just your gift, and will continue for the rest of the your life no matter how well or poorly the investments of the annuity perform.
EXAMPLE: David (62) and Stephen (65) have recently retired and want to support Lund but also make sure they have dependable income during their retirement years. They establish a charitable gift annuity of $50,000 with the Vermont Community Foundation. They receive an immediate tax deduction of $12,311* They receive an annual payment of $2,050 (a rate of 4.1% of their gift value based on their age at the time of establishing the fund). When they both pass away the remaining value of the trust will be transferred to Lund.
*Deduction calculated by the current CMFR and will vary based on donors’ personal circumstances.
To learn more about charitable gift annuities with the Vermont Community Foundation, please click here.
Contact Sharon Lifschutz, Director of Development at (802) 861-2580 or sharonl@lundvt.org for more information on how to set up a charitable gift annuity.
The purpose of this page is to provide general gift, estate, and financial planning information. It is not intended as legal, accounting, or other professional advice. For assistance in planning charitable gifts with tax and other financial implications, the services of appropriate advisors should be obtained. Consult an attorney for advice if your plans require revision of a will or other document.
