Charitable Gift Annuities
A Charitable Gift Annuity with the North Dakota Community Foundation can be a way for you to increase your income and leave a charitable legacy for generations to come. In today's interest rate environment, a charitable gift annuity can give a donor a substantial increase in income over what they could typically earn from a CD or other fixed income investment. A person can take an asset that is not producing a large amount of income, such as a stock or CD, and gift it to NDCF for a charitable gift annuity. The rates for gift annuities (see table below) are particularly attractive in today's marketplace.
In addition to the increased income, you are entitled to take a current income tax charitable deduction and, in certain cases, a North Dakota Income Tax Credit for a percentage of the gift. The Annuity can pay you (and your spouse, if you choose) a lifetime income. The remaining principal becomes a permanent endowment fund with the North Dakota Community Foundation, benefiting future generations forever.
Just how safe is a gift annuity? The payout is backed by NDCF's over $130 million in assets. The NDCF has a 47 year history of careful stewardship of its endowment funds. Please call the Foundation at 701-222-8349 for a free illustration showing your personal annuity rate and tax deduction information.
Sample Annual Gift Annuity Payout for a $10,000 Gift*
| Age | Annual Annuity | Income Tax Deduction** | Income Taxed | Tax-Free Income | Maximum ND Income Tax Credit |
|---|---|---|---|---|---|
| 60 | $520 | $3,384 | $247 | $273 | $1,354 |
| 65 | $570 | $3,494 | $245 | $325 | $1,398 |
| 70 | $630 | $3,725 | $238 | $392 | $1,490 |
| 75 | $700 | $4,126 | $230 | $470 | $1,650 |
| 80 | $810 | $4,519 | $233 | $577 | $1,808 |
* rates subject to change, for illustration purposes only
** income tax deduction in year of gift only
The North Dakota Community Foundation is not engaged in rendering legal or tax advice. This article is meant to provide general information about gift annuities and charitable giving. The Foundation recommends that any prospective donor consult their tax or legal advisor before entering into a giving program.
