FR resources on TheLCF.org
Visit the Gift Calculator

A Flexible Deferred Charitable Gift Annuity at the Lutheran Community Foundation (LCF) provides your clients with income for life beginning at a flexible future date of your clients’ choosing, receive an immediate income tax deduction, as well as provide permanent support for favorite charities and causes.

Benefits to your Client

• The designated annuitant(s) receives income for life. Annuitants can be the donors, their family or friends.
• Payments are deferred to a future window of time and the annuitant chooses when to turn on the income.
• In most cases, some of the gift annuity income is tax-free.
• The donor receives a charitable income tax deduction in the year of the gift.
• Charitable gift annuities can be established with cash and/or publicly-traded securities or mutual funds. The gift minimum is $10,000.00
• When giving appreciated securities the donor by-passes the capital gain at the time of the gift.

Benefits to Charity

• Upon the passing of the annuitant(s) the flexible-deferred charitable gift annuity terminates and the residuum will be placed in the donor’s charitable fund at the LCF.
• The charitable fund provides perpetual support to the charities or causes recommended by the donor.

Target Audience

Clients 50 and older who are looking for additional income in the future and a way to provide for their favorite charities.

Clients who want to give appreciated securities and bypass the capital gain at the time of the gift.

Example

The Donors
A couple, ages 53 and 51, wish to supplement their retirement income and benefit charity.

Their Gift
They establish a flexible deferred gift annuity and transfer $103,350 of publicly traded securities with a cost basis of $50,037 to the LCF. In return, the donors will receive fixed income for life beginning at a future flexible date of their choosing. They also received a charitable deduction of $35,097.74.

The donors set their payment window between 2014 and 2045, and can turn on the income at any time during that period. At the time the flexible deferred gift annuity was established, the couple were given a schedule with payout percentages for each year between 2014 and 2045. Once they decide to start the income stream, the payout percentage does not change. It will remain constant for their joint lives. However, the longer they wait to begin the income stream, the higher the payout percentage will be. Selected years and payouts from their schedule include:

2014 8.0%
2020 11.5%
2030 21.6%
2040 45.6%
2045 69.8%

Steps to establish a charitable gift annuity at the lcf

• Contact an LCF Charitable Gift Planner at 800-365-4172. The Gift Planner will create a personalized illustration proposal packet for your client. You can also use our online illustration request form.
• If after you review the proposal packet with them and they wish to proceed with the gift, please complete and return the Charitable Gift Annuity Application and Fund Workbook contained in the proposal packet.
• If the clients are making a gift of cash, please include a check made payable to Lutheran Community Foundation.
• If the clients are making a gift of securities, please include copies of either the stock certificate(s) or most recent brokerage statement. LCF will contact you with specific asset transfer instructions.

Now, You can Present Charitable Gift Annuites To clients using LCF's Gift Story

The Lutheran Community Foundation is now offering Gift Story -- a great way to introduce your clients to new concepts, such as deferred gift annuities. You can request a Gift Story presentation in place of or in addition to a printed illustration.

You can view a sample of a deferred gift-annuity Gift Story here.

Charitable giving can result in significant tax, legal and financial consequences. Because the Foundation cannot give legal or tax advice, you are strongly encouraged to consult with your personal legal and tax advisors.

To ensure compliance with IRS requirements, be aware that any U.S. federal tax advice that may be contained on this webpage is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing and recommending to another party any transaction or matter addressed herein.

© 2007 Lutheran Community Foundation. All rights reserved. www.TheLCF.org