|
|
|
Winter 2003 Newsletter
Back
to Index
CDs vs. Charitable Gift Annuities
.........................................................................
At a time when certificates of
deposit and other investments are
producing lower returns, charitable
gift annuities may be an attractive
alternative. Depending on a donor’s
age, rates paid by The Norfolk
Foundation may be higher and provide
additional income for life during
retirement.
Donors who are at least 60 years of
age may establish a charitable gift
annuity fund with a contribution of
$50,000 or more. Rates are based on
those recommended by the American
Council on Gift Annuities. Along with
an annual income, the donor receives
an income tax deduction in the year
in which the charitable gift is made,
and a portion of future income
payments to the donor is tax-free,
making the effective rate paid on
gift annuities much higher. Gift
annuity donors also receive benefits
of membership in the Foundation’s
Legacy Society for Hampton Roads.
The accompanying chart shows the ACGA
rates and payouts for a 73-year old
donor who makes a $50,000 cash gift
to the Foundation on February 1,
2003.
|
CGA Type |
Annual ACGA Rate |
Annual Payout |
Quarterly Payments Start Date |
Approximate Tax Deduction |
Annual Tax-Free Income |
|
Immediate |
7.0% |
$3,500 |
3/31/03 |
$18,928 |
$2,252 |
|
Deferred |
10.0% |
$5,000 |
3/31/08 |
$26,078 |
$2,278 |
.......................................................................
The Norfolk Foundation wishes to
thank the following donors for their
recent gifts in memory or in honor of
the individuals listed below. Unless
designated for a specific fund,
memorial gifts become part of the
Foundation’s unrestricted Community
Fund.
Ted Baker
(to the Kay White Baker Art Fund)
In memory of Nancy Wahlig
In memory of Henry Hunter Jr.
In memory of Judge Lawrence Lawless
Margot R. Barnhardt
In memory of her husband, E.C.
Barhardt, III
Dr. L. Arnold Frederick
(to the Florence Smith Medical
Scholarship Fund)
In memory of Mr. and Mrs. Philip
Frederick Sr.
Dr. William Sheahan
In memory of Florence L. Smith
Shred-it Inc.
In honor of loyal customers
..............................................................................................
For information on creating an
endowment fund, starting a charitable
gift annuity or making a gift to The
Norfolk Foundation contact Nan
Edgerton, vice president of
development, at 622-7951 or
nedgerton@norfolkfoundation.org.
To make a memorial gift, please use
the enclosed envelope and let us know
to whom you wish us to send a gift
acknowledgement.
Back to Winter 2003 Newsletter Index
|
