Charitable gift annuities offer a unique opportunity for donors to contribute to organizations like the U.S. Capitol Historical Society while receiving income and tax benefits.
How Do Gift Annuities Work?
Donors make a gift of cash or appropriate property to a chosen organization, and in return, they receive fixed payments for life. The frequency and amount of payments are determined when the gift annuity is established and remain constant throughout the recipients’ lifetime. This ensures stable income while supporting our organization’s mission.
Setting Up a Charitable Gift Annuity:
Many nonprofit organizations such as the U.S. Capitol Historical Society, offer charitable gift annuities. To establish a gift annuity, donors make a donation to a single charity, and the funds are then invested. Based on the donor’s age(s) at the time of the gift, fixed payments are calculated, which the donor receives for their lifetime. Upon the annuitant’s passing, the remaining gift goes to the designated charity.
Increased Cash Flow:
By establishing a charitable gift annuity, donors can secure attractive fixed payments for life. These payments not only include earnings on the annuity funds but also provide a return of part of the initial gift. This results in increased cash flow, which can be beneficial for current and future financial needs.
Current Gift Annuity Rates
Suggested Maximum Rate Schedules for ages 65 and up as approved by the American Council on Gift Annuities – Effective January 1, 2024
| Age | 60 | 65 | 70 | 75 | 80 | 85 | 90+ |
|---|---|---|---|---|---|---|---|
| Rate (%) | 4.9% | 5.4% | 5.9% | 6.6% | 7.6% | 8.7% | 9.7% |
Generous Tax Savings:
Charitable gift annuities offer substantial tax benefits to donors. A portion of the gift used for charitable purposes entitles the donor to a federal and, potentially, a state income tax deduction in the year of the gift. A portion of each payment may also be tax-free or subject to lower tax rates than other income for a specific period. Furthermore, the amount used to fund the gift annuity may be exempt from state and federal gift and estate taxes, if applicable.
* Consult a wealth advisor and tax and estate planning professional for advice based on your priorities and circumstances.
USCHS is a nonpartisan, tax-exempt 501(c)(3) non-profit organization.
The tax ID # is 52-0796820.
U.S. Capitol Historical Society
200 Maryland Avenue, NE
Washington, DC 20002
Example Scenario: Sarah's Charitable Gift Annuity
Sarah Thompson, a retired congressional staffer, decides to support the U.S. Capitol Historical Society by setting up a Charitable Gift Annuity. She transfers $50,000 to the Society to establish the annuity, which will provide her with a fixed annual income for the rest of her life.
Sarah, at 65 years old, will receive an annual income of $3,000 from the annuity, based on current rates. This income stream provides her with financial stability and allows her to support the Society’s mission. In addition, Sarah receives a charitable tax deduction for a portion of her gift, providing immediate tax benefits.
As Sarah continues to receive income from the annuity, the remaining balance of her initial gift will eventually go to the U.S. Capitol Historical Society. This legacy gift will help ensure that future generations have access to the history of the Capitol and Congress, fulfilling Sarah’s goal of making a lasting impact on an organization she cares deeply about.
Contact Us!
For more information about our Gift Annuity program, please contact us or submit the form below:
Phone: 202-543-8919 ext. 23
Email: cclark@uschs.org
