In Advancement Podcast

Planned Giving Officer Keith Johnson unpacks the many benefits of Charitable Gift Annuities.

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Show Transcript:

Hi, my name is Keith Johnson, your Planned Giving Officer at Cairn University and also The Regency Foundation.  Welcome to our wealth planning podcast series.  My hope is to provide some practical ideas on how to establish Godly wealth management habits into your life and discover some creative financial planning strategies based on principles from God’s Word that can benefit you and your family.

Throughout my career I have focused on helping people properly manage 13 wealth management issues that most of us will face in our lifetime.  Most of these financial issues result in significant tax consequences.  The one tax savings tool that Congress allowed to remain is Charitable Giving.  Contributions to a charity such as Cairn University is by far the best way to avoid paying taxes.  Selecting the right charitable giving technique, however, is really important.  Charitable giving provides a way for people to control where their money will go and how it will be used rather than giving it to the US Government through taxes to spend.

Planned Giving provides unique tools that allow people to support causes and organizations that are important to them.  Planned Giving allows one to give not only in life, but also in death.  As we go through this series of podcasts, I will offer some ideas you can use to support Cairn University and at the same time also benefit you, your family and your heirs.

Today, I want to focus on a charitable tool that allows you to make a gift to Cairn University and also provide a lifetime stream of income back to you. This vehicle is called a Charitable Gift Annuity.   Simply put, you donate a lump sum to Cairn University in exchange for a stream of income for the remainder of your life.

Charitable Gift Annuities offer several key benefits to you as the donor and also to the University as well.  Let me list some of those benefits:

  1. You will have the joy of knowing you will be helping the students at Cairn University with your gift after you pass into eternity.
  2. You will delight in knowing that you will be helping young men and women become educated to serve Christ as biblically minded and professionally competent individuals. I know of no better legacy to leave behind.
  3. You will receive a fixed stream of income for as long as you live. We can also arrange to provide lifetime income to your surviving spouse as well. Income can be sent to you monthly, quarterly or annually.
  4. The amount of income received is usually significantly higher than interest rates for CDs. It will be based upon your age.  The current interest rate paid is determined by the American Council on Gift Annuities.  At the time of this recording, current interest rates Cairn University is paying 4% for those who are age 50 – 59; 4.75% for those who are 60-64; 5% for those age 65 – 69 and 5.5% for those who are age 70 or above.  Interest rates do change so we will be happy to provide an updated proposal to you at any time.
  5. A significant portion of your gift Cairn University will qualify for a tax deduction on your tax return. The amount that is deductible on your tax return is determined by formulas created by the IRS, but they are significant.  We provide a detailed statement showing exactly how much is deductible when you enter into your annuity contract with us.
  6. Annuities offer a unique feature in that a significant portion of the income you will receive will be tax exempt. That means if you choose to receive a quarterly check, only a portion of it will be considered interest income that must be claimed on your tax return each year.  The balance is tax free income.
  7. The minimum amount to establish a Cairn University Charitable Gift Annuity is $10,000.

If a donor creates a Charitable Gift Annuity through a gift of stock, mutual funds or other investments, you can not only receive the charitable tax deduction, but you can avoid any tax on the capital gains of the assets contributed.

So, today’s planned giving idea solves several important wealth management issues:

  1. It provides a steady income stream for the remainder of the donor’s life.
  2. You receive interest rates that are higher than you typically receive at banks and other financial institutions.
  3. You no longer need to be concerned about the uncertainty of the stock market in securing a steady income for life.
  4. You will make a meaningful gift to Cairn University and establish a lasting legacy.

For more information regarding a Charitable Gift Annuity, please reach out to me.  We are so grateful for the significant number of donors who already have given to the University in this way.  Your support provides scholarships and grants to some 90% of our student body.

At Cairn University and The Regency Foundation we want to be a valuable resource of information and ideas you can use in a practical way. To that end, we are offering one hour of financial planning consultation at no charge to you.  If would like to take advantage of that benefit or if you have any questions, feel free to contact me by email at kjohnson@cairn.edu.

Thank you for your generosity and I look forward to sharing next month’s Advancement podcast.

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