Five Ways a Gift Annuity Can Benefit You

Have you considered the benefits of an Anglican Church of Canada Charitable Gift Annuity*? Here are five points to consider:

  1. Attractive Rates: Mrs. P, age 80, was receiving a modest income from a $50,000 GIC. When it matured, she obtained an Anglican Church gift annuity which will benefit her parish upon her death. Her rate of return on the annuity was approximately 7.5% as opposed to 2.5% had she renewed the GIC.
  2. Tax Free Payments: Part, or all, of each payment from a gift annuity is tax free as a significant portion of the payment is considered to be a return of capital rather than interest income. Because Mrs. P was 80 when she acquired her annuity, her payments were completely tax free.
  3. Tax Credit: Anybody acquiring a gift annuity receives a donation receipt, although, not for the entire amount. For her $50,000, Mrs. P received a tax receipt for almost $16,000. If she was not able to use the entire receipt in the year she made the donation, she could carry forward any unused tax credit to any of the following five years.
  4. Fixed, Regular Payments: Annuity payments are not affected by events in the financial markets; hence, they never change. As annuity payments are backed by the full assets of a Canadian life insurance company or by the Anglican Church of Canada, you are assured that payments will continue for life.
  5. Personal Satisfaction: The greatest benefit may be the personal fulfillment you receive by helping your church as well as yourself. Your gift annuity enables the Church to continue providing essential ministry and programs in the parish, diocese, national church or with our partners overseas.

If you have questions or want to learn more about this, or any other, type of planned gift, please contact our Planned Giving Officer, David Connell

*An annuity may be thought of as a pension providing a regular income stream for life.