Los Angeles Jewish Home's Blog

Putting Family First: The Ins and Outs of Charitable Gift Annuities

Q. How does a charitable gift annuity work?
A. The Los Angeles Jewish Home pays you, or you and another person you select, a fixed amount for life, from a monetary or securities gift you give. What's left of your gift after the lifetimes of the people receiving payments helps support our mission to care for our nearly 1,000 residents.

Q. How are the payment amounts determined?
A. The annual rate of your payment is based on your age at the time of the gift. The older you are, the higher your gift annuity rate. Payment rates are locked in for the duration of the gift annuity.

Q. What are my tax benefits for making this type of donation?
A. You qualify for a sizable charitable income tax deduction in the year you set up the gift annuity. In addition, each year, a portion of your payment is income tax-free, until you reach your anticipated life expectancy. Plus, part of your payments may be taxed at a lower capital gains tax rate.

Get Payments When You Need Them
You can also set up a deferred gift annuity where you delay receiving payments until a later date — such as when you reach retirement. You'll get the income when you need it most, and the payout rate and your tax deduction will be significantly higher than that of an immediate payment gift annuity.

If you have questions about charitable gift annuities, please contact Aaron Levinson at (818) 757-4416 or aaron.levinson@jha.org.

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