A gift annuity is a contract between a donor and NEADS that will provide a guaranteed, fixed income for the life of the donor or other designated beneficiary. The annuity assets are commingled with NEADS's endowment, and the program is backed by the total assets of the organization. There are no management fees or investment worries. The minimum annuity gift is $10,000.
An annuitant must be 60 years of age at the date of the agreement. Rates offered are based on the annuitant’s age at the time of the gift. Payments are made quarterly, and a substantial portion of each payment is received tax free.
Gift annuities generate an immediate charitable income tax deduction. Capital gains are reduced dramatically and can be reported over a number of years so that those taxes are not due all at one time.
Annuities based on two lives are also available, but the rates are generally lower.
Charitable Gift Annuity Rates
NEADS's charitable gift annuity rates are based on the recommendations of the American Council on Gift Annuities (ACGA), a national non-profit organization that uses detailed actuarial calculations and investment return expectations to publish suggested annuity rates for charities. NEADS's chief financial officer adapts the ACGA recommendations to best suit the needs of the organization and its donors.