For some time now you’ve known about the ministry and projects of the Anglican Diocese of Ontario Foundation and its partners. You may have wished to advance this vital work by supporting the Foundation with a generous gift, for on-going ministry or for special projects. Through our Foundation, you may have wished, too, to support your parish, or the Diocese of Ontario’s varied ministries, or The Primate’s World Relief and Development Fund, the Anglican Foundation of Canada, the Community Foundation of Kingston and Area, theological college, or any number of not-for-profit registered charities.
You have savings and investments, but interest rates fluctuate and sometimes your month-to-month income doesn’t keep pace with rising prices. What’s more, you know your investments have to last your lifetime.
It’s a dilemma, but there is good news. You may be able to make your gift and improve your cash flow at the same time.
A charitable gift annuity is an arrangement under which you make a contribution to a church or charity and receive, in return, guaranteed payments for life. The amount of these payments depends on your age and the size of your contribution, but they will likely be significantly higher than you are receiving from your present investments, and the annuity arrangement is guaranteed. It will continue as long as you live, no matter what happens to the economy or changing interest rates. If you are married, you may choose a joint-and- survivorship annuity which continues as long as either spouse lives.
Your gift annuity brings you a special bonus at tax time: a sizeable portion of your payments will be tax-free. While older annuitants will receive payments that are totally tax- free, or close to it, all donors are entitled to a donation receipt at the outset that will result in a tax credit.
Consider one example: (see also our display advertisement in this edition of Dialogue) Muriel Chan, age 78, contributes $ 10,000 for our diocesan Foundation to share with the Community Foundation of Kingston and Area for assistance to vulnerable local residents. Muriel receives a lifetime annuity of almost $ 800 (8%) per year – 91% of which is paid out tax free. She is also entitled to a donation receipt for $ 2,500.
To arrange your gift annuity, you sign a gift agreement with our Foundation that authorizes us to use a portion of your contribution to purchase an annuity from a licensed insurance company that pays the amount stipulated in the gift agreement every month. Five percent of your contribution is allocated for the present ministry and mission of the Foundation. The balance of your contribution, retained by the Foundation after purchasing the annuity, will be used as you direct. You may specify whether you wish it to be available for immediate use or invested until it reaches the size of your original contribution. In consultation with us, you may also specify which particular programme, project or ministry your gift will support, as Muriel has done in this example.
Gifts that meet minimum requirements may be used to establish funds which continue to provide support for the diocesan Foundation or its partners in perpetuity.
We would be pleased to explain the gift annuity in greater detail and answer your questions. At your request, we will prepare a personalized illustration showing the annuity and tax consequences from whatever contribution you are considering. We encourage you to review the illustrations in this edition of Dialogue with your own financial and tax advisors, and when you are ready to proceed, we’ll assist you in the arrangements.
The Charitable Gift Annuity (sometimes referred to as The Gift Plus Annuity or Reinsured Annuity – given the role licensed Canadian insurance companies play) is your opportunity to make a generous gift to important and often life-changing ministry, and to do yourself a favour at the same time!
“But do not neglect to do and to share what you have, for such sacrifices are pleasing to God.” (Hebrews 13:15, 16)
A gift that gives back: “the Gift Plus Annuity”
For some time now you’ve known about the ministry and projects of the Anglican Diocese of Ontario Foundation and its partners. You may have wished to advance this vital work by supporting the Foundation with a generous gift, for on-going ministry or for special projects. Through our Foundation, you may have wished, too, to support your parish, or the Diocese of Ontario’s varied ministries, or The Primate’s World Relief and Development Fund, the Anglican Foundation of Canada, the Community Foundation of Kingston and Area, theological college, or any number of not-for-profit registered charities.
You have savings and investments, but interest rates fluctuate and sometimes your month-to-month income doesn’t keep pace with rising prices. What’s more, you know your investments have to last your lifetime.
It’s a dilemma, but there is good news. You may be able to make your gift and improve your cash flow at the same time.
A charitable gift annuity is an arrangement under which you make a contribution to a church or charity and receive, in return, guaranteed payments for life. The amount of these payments depends on your age and the size of your contribution, but they will likely be significantly higher than you are receiving from your present investments, and the annuity arrangement is guaranteed. It will continue as long as you live, no matter what happens to the economy or changing interest rates. If you are married, you may choose a joint-and- survivorship annuity which continues as long as either spouse lives.
Your gift annuity brings you a special bonus at tax time: a sizeable portion of your payments will be tax-free. While older annuitants will receive payments that are totally tax- free, or close to it, all donors are entitled to a donation receipt at the outset that will result in a tax credit.
Consider one example: (see also our display advertisement in this edition of Dialogue) Muriel Chan, age 78, contributes $ 10,000 for our diocesan Foundation to share with the Community Foundation of Kingston and Area for assistance to vulnerable local residents. Muriel receives a lifetime annuity of almost $ 800 (8%) per year – 91% of which is paid out tax free. She is also entitled to a donation receipt for $ 2,500.
To arrange your gift annuity, you sign a gift agreement with our Foundation that authorizes us to use a portion of your contribution to purchase an annuity from a licensed insurance company that pays the amount stipulated in the gift agreement every month. Five percent of your contribution is allocated for the present ministry and mission of the Foundation. The balance of your contribution, retained by the Foundation after purchasing the annuity, will be used as you direct. You may specify whether you wish it to be available for immediate use or invested until it reaches the size of your original contribution. In consultation with us, you may also specify which particular programme, project or ministry your gift will support, as Muriel has done in this example.
Gifts that meet minimum requirements may be used to establish funds which continue to provide support for the diocesan Foundation or its partners in perpetuity.
We would be pleased to explain the gift annuity in greater detail and answer your questions. At your request, we will prepare a personalized illustration showing the annuity and tax consequences from whatever contribution you are considering. We encourage you to review the illustrations in this edition of Dialogue with your own financial and tax advisors, and when you are ready to proceed, we’ll assist you in the arrangements.
The Charitable Gift Annuity (sometimes referred to as The Gift Plus Annuity or Reinsured Annuity – given the role licensed Canadian insurance companies play) is your opportunity to make a generous gift to important and often life-changing ministry, and to do yourself a favour at the same time!
“But do not neglect to do and to share what you have, for such sacrifices are pleasing to God.” (Hebrews 13:15, 16)
Diocese of Ontario Foundation
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