Charitable Gift Annuity

A Charitable Gift Annuity is a well established gift alternative that can make a difference in your life and the lives of Palmer children now and for years to come.

 It is a simple contract in which Palmer Home agrees to pay, during your lifetime, fixed cash payments in exchange for a gift of cash, marketable securities or other property.  Gift annuities can be issued for the lives of one or two people and there are no charges or fees to establish them.

 Some of the benefits are:

• A charitable deduction that will help reduce your income taxes.

• A portion of the payments are tax free making your effective return even greater.

• Gifts of appreciated assets may enjoy savings on capital gains taxes.

• Your Charitable Gift Annuity will not be subject to probate or estate taxes.
• Satisfaction in knowing that your gift will eventually help children who have no where else to turn.
• You may be able to make a larger gift than you ever thought possible

Mrs. Jones, an 80 year old widow, has a $10,000 CD that is maturing and she can only get 2.1% return if she renews it.  Since she plans to leave this as a bequest to Palmer Home anyway, she decides to remove this amount from her estate and take advantage of the increased rate of return (8%) and the immediate partial tax deduction she will receive from a Charitable Gift Annuity.  By doing this she will receive: 

• An immediate income tax deduction of $4,641.
• Annual income of $800 (8.0%) and $570 of this amount will be tax free for 9.4 years..

 Palmer Home also issues Deferred Payment Charitable Gift Annuities which can be helpful in retirement planning.

 Personalized calculations are available at no cost and no obligation

Mr. & Mrs. Smith, ages 82 & 79, have $100,000 in a stock that originally cost them $20,000.  Due to the large amount of capital gains tax they would have to pay if they sell the stock, they have decided to use the stock to fund a two life annuity at Palmer Home.  By doing this they will receive: 

• An immediate income tax deduction of $37,787
• Annual income of $7,200.

*These examples were calculated using a 4% IRS Discount Rate.

Both Mrs. Jones and the Smiths will also receive great satisfaction from making a gift to Palmer Home for Children and in knowing they are supporting a ministry that has helped hurting children for more than one hundred years.

 Remember, Charitable Gift Annuities can help you earn increased rates of return on your investment, can provide some tax free income, or they can help you provide income for a loved one while making a gift that keeps on giving.

*These calculated values vary slightly from month-to-month due to IRS regulations.  These calculations were correct as of May, 2004.

 Palmer Home for Children - P.O. Box 746, Columbus, MS 39703 - Phone:(662)328.5704