The Charitable Gift
Annuity
It’s your opportunity to make a generous gift to the
Church and do yourself a favour at the same time!
The ministry and programme of The Anglican Church of
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 that 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 Gift That Gives Back
A gift annuity is an arrangement under which you make a contribution to
the church and receive, in turn, 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 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, all donors are entitled to a donation
receipt that will result in a tax credit.
What are the Advantages and Benefits
of a General Synod Charitable Gift Annuity?
Attractive Rates: Ron
and Susan S., in their mid–70s, are receiving a modest income from their GIC.
When the GIC matures in two months, they plan to obtain a General Synod gift
annuity that will noticeably increase their annual, after–tax income.
Gift annuity rates
are very attractive for older supporters of the Church. Depending on age, rates
can vary between 5% and 10%. Many people in their retirement years will be
pleased when they compare their low investment rates with the current annuity
rates offered by the Anglican Church of Canada.
Tax–Free Payments: Part
of each annuity payment is tax-free. For example, Patricia J., age 79,
contributes $30,000 toward a gift annuity. Every year, she will receive $2,510 (8.4%):
$2,420 will be realized tax–free. (Depending on age, all or a generous portion
of payments will be tax–free.)
Tax Credit: All donors will also receive a donation receipt,
entitling them to income tax credits. Patricia J., above, receives a donation
receipt for $7,500 for her contribution, which will reduce the amount of income
tax she pays in the year the gift is made or in the next five years.
Fixed, Regular Payments: It
is nice to be able to count on a specific amount of payment, no matter what
happens to the financial markets. Your annuity payments will not change from
year to year.
And since gift
annuity payments are backed up by the full assets of General Synod, you have
assurance that your cheque will be direct deposited every payment date for the
rest of your life.
Personal Satisfaction: Perhaps
the greatest benefit of a General Synod Charitable Gift Annuity is the personal
fulfilment you receive by helping the Church as well as yourself. Your gift
annuity assists a worthy cause that makes a difference in the lives of others and
enables us to continue to provide essential ministry and programmimg throughout
There are additional
reasons for establishing a gift annuity with the Anglican Church of Canada.
Some like the idea of reducing the size of their estate, thus lowering
potential probate costs. Others like the ease and simplicity of the gift
annuity transactions.
Consider some examples:
John S., age 90, contributes $15,000 for a gift annuity with General
Synod. He receives an annuity of $ 1,500 (10 %) per year for life, of which
100% is paid out tax–free. He is also entitled to a donation receipt for $5,457.60
in the year he makes the gift. Upon his death, the Primate’s World Relief and
Development Fund will receive a substantial portion of John’s original
contribution.
Mary L., age 84,
contributes $10,000 for a gift to her parish, and receives a lifetime annuity
of $821.40 per year (8.214%), 100% of which is paid out tax free. She is also
entitled to a donation receipt of $4,368.98. Her parish will eventually use
Mary’s gift for on–going renovations to the parish hall.
How to Arrange Your Gift Annuity
To arrange your gift annuity, you sign a gift agreement that authorizes
the Church to establish a segregated trust in your name in General Synod’s
Consolidated Trust Fund. Upon your death, and that of your spouse, if you have
a joint–and–survivorship annuity, the remaining capital (between 50 and 100% of
the original gift) is used as you directed when you made the agreement. In
consultation with us, you may specify which particular programme, project or
ministry of the Diocese, the
The Diocesan Planned Giving Officer will be pleased to explain the
General Synod Charitable 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 illustration with your own
financial and tax advisors, and when you are ready to proceed, we’ll assist you
in the arrangements.
If you would like more information, in confidence and without obligation,
please complete the Request
for Planned Giving Information form.