Charitable Gift Annuities
Two key benefits of the Charitable Gift Annuity are the simplicity and reliable income. When you give Blue Lake Fine Arts Camp a gift of cash or marketable securities in return for a gift annuity, we agree to pay you and/or your beneficiary a life income in the form of an annuity. The annuity rate depends on your age. The older you are, the greater the amount.
You may choose to create a gift annuity but receive payments later in life, which is called Deferred Gift Annuity. This type of gift is attractive to younger donors who are planning for their retirement. They will receive a higher rate and a lifetime income, based on when they want to start receiving payments (at least 12 months after establishing the fund). For those who need current tax deductions and want to augment their retirement income on a tax-sheltered basis, a deferred gift annuity is a perfect option.
The charitable gift annuity also has tax advantages. Part of the gift qualifies for a federal income tax deduction. By transferring an appreciated asset to Blue Lake Fine Arts Camp, you will reduce or defer your capital gains tax and realize reduced probate costs and estate taxes since the stock is no longer a part of your estate. (Check with your tax or financial advisor for detailed tax implications.)
One major difference between a charitable gift annuity and a charitable remainder annuity trust is that you can establish a gift annuity through Blue Lake Fine Arts Camp with as little as $5,000; trusts often require a more substantial initial investment.