The Charitable Gift Annuity

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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 Canada, its parishes and congregations, and the life–changing work of related entities is important to you. You may have wished to advance this vital work by supporting the Diocese of Edmonton, General Synod, The Primate’s World Relief and Development Fund, the Anglican Foundation, or your parish with a generous gift, for on–going ministry or for special projects. You may even have considered starting an endowment that will continue giving in your name in perpetuity.

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 Canada and with our partners overseas.

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.

Sharon and Dan R., ages 75 and 79, contribute $50,000 as a gift to the Anglican Foundation, and receive $3,504 per year (7.0%) for as long as either of them lives. The tax–free portion is $2,825 per year and the donation receipt is $10,000. Their gift will assist the Foundation in making grants and loans to parishes in Canada’s north and providing support for special, creative programmes.

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 National Church, or your parish your gift will support. Gifts are often directed in support of the Anglican Foundation, the Primate’s World Relief and Development Fund, or a theological college. Gifts that meet minimum requirements may be used to establish endowed funds which continue to provide support for the Church in perpetuity. Eight percent of your contribution is allocated for the present ministry and programme of General Synod, supporting work in the North and our partners overseas.

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.

The information on this webpage does not constitute legal or financial advice and should not be relied upon as a substitute for professional advice. The Planned Giving Office encourages you to seek professional legal, estate planning and financial advice before deciding on a course of action. The examples given above reflect rates at the time of writing and are subject to change.