Charitable Gift Annuity
The charitable gift annuity is a win-win scenario for the donor and the Ethical Society of St. Louis. The donor will receive income as well as income tax benefits while supporting the Ethical Society.
What is an Ethical Society of St. Louis Charitable Gift Annuity?
The Society’s Charitable Gift Annuity is a contractual agreement between one or two donors and the Ethical Society of St. Louis (ESSL).
In return for the donor’s gift of cash or securities, the ESSL will make quarterly payments to an annuitant or annuitants for life in a single-life or two-life annuity.
These payments are fixed and based on the market value of the initial gift and the age of the annuitant or annuitants. After the life of the annuitant or annuitants, the residual value of the annuity contract passes to the ESSL for general operations.
The ESSL Charitable Gift Annuity is available to anyone 60 or above and the minimum annuity contract is $5,000.
What are the Benefits of an ESSL Charitable Gift Annuity?
- The annuity rates are substantially higher than current rates for Treasuries, CDs, passbook or money market accounts.
- In the initial year of the gift, there is a partial charitable tax deduction.
- A portion of each annuity payment received during life expectancy is free from income tax.
- There is the option of having an immediate or deferred annuity. Immediate annuity payments would start within 90 days of the gift and deferred annuity payments could start years after the gift.
- A surviving spouse or loved one in a twolife annuity will receive payments for life after the first annuitant’s death.
- If the initial gift is funded by appreciated securities, a donor or donors can reduce the capital gains tax on a portion of the gift and spread the remaining tax over their life expectancy.
Annuity rates are determined by the American Council of Gift Annuities or ACGA. The following tables have the current rates as of January 1, 2012. They are subject to change.
| SINGLE LIFE GIFT ANNUITY | TWO-LIFE GIFT ANNUITY | ||
| Donor Age | Payment Rate | Both Ages | Payment Rate |
| 60 | 4.4% | 65/60 | 4.0% |
| 65 | 4.7% | 70/65 | 4.4% |
| 70 | 5.1% | 75/70 | 4.8% |
| 75 | 5.8% | 80/75 | 5.3% |
| 80 | 6.8% | 85/80 | 6.1% |
| 85 | 7.8% | 90/85 | 7.3% |
For more information, see our Charitable Gift Annuity brochure.