Charitable Gift Annuity—Immediate Payment
To establish a charitable gift annuity, you make a gift to the Cleveland Museum of Art and in exchange receive a fixed annual dollar amount for life. The principal remaining at your death will then benefit any Cleveland Museum of Art program that you choose.
While gift annuities can be funded at a younger age, this type of gift might be especially attractive if you are aged 70 or older, you want to support the Cleveland Museum of Art, and you would like to secure an immediate stream of income for yourself or for yourself and your spouse. The amount of the payments is based on the age(s) of the beneficiary(ies). The older one is, the higher the payout rate one receives. In addition to the stream of fixed payments, the gift will also generate an immediate charitable income-tax deduction. If you are younger and you wish to begin receiving payments at a future date, a deferred-payment gift annuity might be a more suitable gift arrangement.
Gift Range: $25,000 or more
Example: Anne, aged 78, gives $25,000 in cash to the Cleveland Museum of Art in exchange for a gift annuity. She receives an income-tax deduction of approximately $11,563, based on her age. She will begin receiving income checks of $1,500 each year for the rest of her life. When she passes away, the remaining principal will benefit the Cleveland Museum of Art.
Pointer: The charitable gift annuity is especially rewarding if funded with appreciated long-term securities that generate little or no income. If you transfer such securities to the Cleveland Museum of Art in exchange for a charitable gift annuity, you will avoid a significant amount of capital-gain taxation and any remaining capital gain will be reported in prorated amounts over the life (or lives) of the beneficiary(ies).
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