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education Charitable gift annuities: the gift that gives back Herb and JoAnn Heinrich have deep roots in Michigan. Spanning about 400 acres, the Heinrich farm has been in their family nearly 100 years. The family also has a history of cancer. Since they have retired they continue to live on the farm and rent out their land to local farmers. With their extra income from the farm operations, they donate to the American Cancer Society. 
The Heinrich's choose to donate to the American Cancer Society in the form of charitable gift annuities: contracts between the Society and a donor. Donations of this sort are tax deductible and benefit both the Society, in the form of funding, and the donor, in the form of tax deductions and a fixed lifetime payment. "Anyone can do it. A person can give cash, property, or stock. Gift annuities that are funded with appreciated property or stock provide additional, significant tax breaks to the donor," explained Jeff Jacobs, director of estate and asset services of the American Cancer Society. A charitable gift annuity is an easy way to integrate donating to the Society with a person's financial, estate, or tax planning objectives. "In a sense, it was somewhat of a safety net for us in our old age...It's always good to know you have a certain amount of money," explained Herb Heinrich. They have given four gift annuities since 2001, and are planning a fifth this year. Generally, donors choosing gift annuities are seniors, although younger donors may find this option to be an attractive avenue to supplement retirement savings because there is an option of deferring payments into the future. As of 2005, the American Cancer Society has received about $55 million in gift annuities, while the fixed lifetime payments to donors equal around $3 million. The donor is allowing the American Cancer Society to plan its finances for the long-run. "Gift annuities provide a long-term income stream for the organization that will last for the future," explained Jacobs. This is a fantastic way to provide the Society funding, while also providing donors tax benefits and lifetime income. The American Cancer Society will provide information to set up a charitable gift annuity and related estate planning services free of charge. "They did a good job explaining it and put it all on paper. I knew exactly what I was going to get and how it worked before I signed the bottom-line." said Heinrich. To learn more about setting up a charitable gift annuity, go to www.cancer.org and click the "Donate" link, then proceed to "Planned Giving." Or, contact your local estate and asset services director of the American Cancer Society at 800-ACS-2345. | |
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