Maximize Your Benefits Donor Option Gift Annuity Gift

Maximize Your Benefits Donor Option: Gift Annuity

Gift Annuity – Maximize Your Benefits

Why Gift Annuity? Achieve your philanthropic goals Higher income than traditional fixed income assets Tax Deduction Fixed and guaranteed income for life Tax favorable income

Example Donor Profile: Phil and Thropic Smith Phil age 65 Thropic age 65 $25, 000 Gift Annuity, Joint Life Design

Phil and Thropic Smith Current Asset - $25, 000 of CD’s earning 1. 7% $425 annual income ($25, 000 x 1. 7%) – fully taxable Interested in making an immediate impact to their nonprofit

Phil and Thropic Smith American Council of Gift Annuities: Individual 2 Lives Age Rate 50 3. 7 50/50 3. 1 55 4. 0 55/55 3. 5 60 4. 4 60/60 3. 9 65 4. 7 65/65 4. 2 70 5. 1 70/70 4. 6 75 5. 8 75/75 5. 0 80 6. 8 80/80 5. 7 85 7. 8 85/85 6. 7 90+ 9. 0 90/90 8. 2

Phil and Thropic Smith $25, 000 Gift Annuity $7, 673 Nonprofit $1, 050 annually for life 4. 2% payout set by American Council of Gift Annuities Immediate Cash Gift = Tax Deduction Annual Income to Donor Taxable Portion of Income Tax Free Portion of Income $7, 673 $1, 050 $316 $734 Tax Savings (25% tax bracket) $1, 918

Frequently Asked Questions How much income I can get? • Payout Rates are determined by age and set by the American Council of Gift Annuities • The Minimum Gift Annuity for the NEC Foundation is $10, 000. If you choose $25, 000, $100, 000, or any other amount, the Payout Rate would remain the same, but the annual Payout Amount would be correspondingly greater than at the $10, 000 level

Rates Effective January 1, 2012 Approved by the American Council on Gift Annuities Suggested Charitable Gift Annuity Rates SINGLE LIFE The ACGA payout rate for a 75 Year Old is 5. 8% Age Rate 5 -10 2. 0 50 3. 7 73 5. 5 11 -15 2. 1 51 -52 3. 8 74 5. 7 16 -19 2. 2 53 -54 3. 9 75 5. 8 20 -23 2. 3 55 4. 0 76 6. 0 24 -26 2. 4 56 -57 4. 1 77 6. 2 27 -29 2. 5 58 4. 2 78 6. 4 30 -32 2. 6 59 4. 3 79 6. 6 33 -34 2. 7 60 -61 4. 4 80 6. 8 35 -36 2. 8 62 -63 4. 5 81 7. 0 37 -38 2. 9 64 4. 6 82 7. 2 39 -40 3. 0 65 4. 7 83 7. 4 41 -42 3. 1 66 -67 4. 8 84 7. 6 43 3. 2 68 4. 9 85 7. 8 44 -45 3. 3 69 5. 0 86 8. 0 46 3. 4 70 5. 1 87 8. 2 47 3. 5 71 5. 3 88 8. 4 48 -49 3. 6 72 5. 4 89 8. 7 90+ 9. 0

Frequently Asked Questions Who Guarantees the payments? Payments are guaranteed by a AA or AAA rated Annuity Company, i. e. NY Life, Nationwide, John Hancock, American National, Prudential, Lincoln Benefit Life, William Penn The Annuity is called a Single Premium Immediate Annuity (SPIA) which provides 2 things: 1. Guaranteed income which you can’t outlive even if you live beyond your life expectancy 2. Tax favorable income – each payment constitutes both interest and return of principle

Frequently Asked Questions Can I use an IRA Required Minimum Distribution (RMD)? RMD’s are a great asset to use. The RMD is a taxable event in which could be off-set by the tax deduction in placing the RMD into a Gift Annuity while also increasing and guaranteeing the Income for life.

Frequently Asked Questions What other gifts can I use? • • Cash, Credit Card, Debit Card Securities, Stocks & Bonds Retirement Accounts Other Check with your financial advisors to determine your own best tax option to donate!

Frequently Asked Questions What if I want to support the NEC Foundation and some other of my favorite charities? If the NEC Foundation is receiving 50% or more of your gift, we can split you donation with one or two other 501 (c)(3) organizations You write the check to the NEC Foundation and we “Passthrough” your gift to the other charity(ies)

Questions? For specific information on personal Gift Annuity contact: Barry A. Mc. Ewen, CFRE Development Director (800) 924 -2643 (419) 535 -3232 bmcewen@nationalexchangeclub. org