Charitable Gift Annuity
The Bountiful Gift Annuity
The Covenant House Gift Annuity combines guaranteed immediate income fixed for life, with substantial tax-free income over time and a generous tax deduction this year. Also, if you use appreciated securities, you will avoid capital gains taxes as well. Most importantly, your Covenant House Gift Annuity gives our kids a chance for a better life.
Learn more about the benefits of a Covenant House Gift Annuity.
Give Hope to Homeless Kids While providing immediate income and other benefits for yourself, you'll also provide love, support and hope for a new generation.
For more information and assistance, please call Planned Giving toll free at 1-866-COV-HOUSE (That's 1-866-268-4687), or email us at plannedgiving@covenanthouse.org.
A Covenant House Gift Annuity provides many benefits
Guaranteed Immediate Income The Covenant House Gift Annuity guarantees quarterly payments to the annuitant(s) for life, beginning immediately. The rate is generous and based on your age on the gift date. (see the Gift Annuity Rate Chart for current maximum rates). Nominal rates may be lower than those available from commercial insurance companies.
All payments are guaranteed by 1) the assets of our Segregated Annuity Reserve Fund, set aside specifically for this purpose under the oversight of the Insurance Commissioner of New York State; and 2) all other Covenant House assets. Annuity payments are not guaranteed or insured by any state agency.
Tax-Free Portion A substantial portion of each annuity payment is tax-free over the life expectancy of the donor because it is considered a return of the gift principal. After the life expectancy of the donor, the entire annuity becomes taxable.
Avoid Capital Gains Tax Gifts of appreciated securities provide more benefits. Both the annuity amount and the income tax deduction are based on the full value of the gift. No capital gains tax on the appreciation will be due at the time of the gift, as long as the donor is an annuitant. For gifts of appreciated securities, the tax-free portion of the annuity payments is reduced.
Deduct a Substantial Portion of Your Contribution this Year If you itemize your deductions in the year you make the gift, you will receive an immediate income tax deduction which will usually exceed one third of the contributed value. The tax deduction will be greater if the Donor chooses a lower annuity rate. IRS Regulations limit charitable deductions to 50% of your Adjusted Gross Income for cash gifts (30% of AGI for stock gifts) in any year. Any unused deduction can be carried forward for five additional years.
No Maximum Contribution The minimum gift for a Covenant House Gift Annuity is an affordable $5,000, with no maximum limit on the amount you can contribute!
Type of Gift A Covenant House Gift Annuity can be established with either cash or securities.
Simplicity The Covenant House Gift Annuity is simple to understand. The agreement to establish your annuity is just one page written in simple English. No Fine Print!
Remainder for the use of Covenant House After the annuity payments have ended, your gift will be used to help the kids at Covenant House. Prospective donors are urged to seek the advice of a qualified tax advisor before entering into a Covenant House Gift Annuity.
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