By Jared Lindell
Everyone reaches a point in life where retirement becomes inevitable. Retirement can be exciting for some people, especially those looking to travel or take advantage of free time not afforded during their professional life. For others, retirement can be intimidating, as there is a perception of “what do I do now” or “how will I survive financially.”
These are both valid questions and can be especially stressful for the philanthropic, who wish to give back to the community but are fearful of losing total control over their respective assets. This is where the Community Foundation can be a great resource in helping you be charitable, while also maximizing the return you can receive on some of your retirement investments.
How can this be done? One simple way is through the establishment of a Charitable Gift Annuity. The Foundation began offering gift annuities earlier this year, in part, with the previously mentioned scenario in mind. Donors began to approach the Foundation and pose the question, “I am at a point in my life where I would like to give back, but I am not sure I can let go of all my financial resources…what gift options fit my situation?” For such a donor, the Charitable Gift Annuity becomes the perfect option.
While the Charitable Gift Annuity is not to be considered a conventional investment, it does provide a substantial benefit for the donor and, ultimately, the community down the road. Additionally, it is a dependable gift, as donors can feel good knowing they will receive a cash return from their gift every three months. This dependability and piece of mind is critical for any donor and especially those newly retired.
Quite simply, here’s how a Charitable Gift Annuity works: (1) A donor establishes the gift annuity through a gift of cash or other assets to the Foundation. (2) The Community Foundation then agrees to pay the donor a quarterly payment for as long as the donor lives (payment is based on size of the gift and age of the donor). (3) The donor receives an income tax deduction for a portion of the initial gift and tax deductions on each quarterly payment. (4) At the donor’s passing, the remainder of the gift serves to benefit an organization or cause of the donor’s choice.
How does the dependability, predictability, and reliability of a Charitable Gift Annuity sound to you? While there are many ways to give to the Community Foundation, the Charitable Gift Annuity is simply a new option that might fit your particular charitable niche. To learn more about the Charitable Gift Annuity or many other ways you can plan for your financial future, please visit the Community Foundation’s planned giving website at www.crcfgift.org. This website has all the information you need to discover unique giving opportunities and their benefits. In addition, the Foundation staff is always willing to assist you with any questions you have. Call 661-3390 if any such questions arise.
Finally, always remember that whether you are talking about retirement or simple charitable giving, you should always feel good about the choices you make. It is the Community Foundation’s goal to make that happen.