By Sr. Laura Goedken, OP
A gift annuity is a contract between a charity and a donor. The donor transfers property (cash or securities) to the charity and the charity promises to pay income to the named beneficiaries.
The Catholic Foundation for the Diocese of Davenport offers this opportunity to our donors. An annuity is a relatively simple agreement for the donor. Regular payments are guaranteed for the lifetime of the beneficiary. There is an immediate income tax deduction and partially tax-free payout from the annuity contract.
For example, Mary, age 82, put $25,000 in a charitable gift annuity. Each year, she will receive a payment of $1,800 (7.2%). The greater portion of this payment is tax-free income. It is good to be able to count on a specific amount of payment no matter what happens to the financial markets. At the death of the donor the remaining gift amount stays with the Catholic Foundation. The donor has the satisfaction of making a gift and also receiving income.
For more information or to set up a gift annuity, contact Sister Laura Goedken at the Diocese, 563-888-4252 or Goedken@davenportdiocese.org
(Sr. Goedken is director of development for the Diocese of Davenport.)
