Charitable Gift Annuity
A charitable gift annuity can provide annuity payments for life and then support your favorite ministry.
Charitable gift annuities with the Evangelical Lutheran Church in America are simple in design, easy to establish, and may be just the right way for you to lock in a future gift for your congregation, your favorite ELCA ministry or institution, or for the work of this church where the need is greatest.
Once you have made your gift, the ELCA Foundation does the rest. You receive a check in the mail, or a deposit in your bank account, at a fixed rate for the rest of your life. (Payments can be made annually, semi-annually, quarterly, or monthly, assuming each payment is at least $100.)
Charitable deduction for making a gift.
Part of your annuity is designated by the IRS as a charitable gift. Therefore, if you itemize deductions, you receive a charitable income tax deduction. If the full deduction cannot be used for the year you make your gift, the unused portion can be carried forward for up to five years.
Income tax savings on annuity payments.
Usually some portion of your annuity payment is a return of principal throughout the years of your life expectancy. This portion is tax-free to you. If you fund your annuity with securities owned more than 12 months that have appreciated (valued more now than when purchased), some of your annuity payment may be taxed at your capital gain rate, while a portion of the tax on capital gain may be completely avoided.
You decide the ELCA ministry that will ultimately benefit from your gift annuity.
Designate any ministry of the ELCA you choose—
your congregation, synod, social ministry organization, colleges and seminaries, churchwide ministries, or other ministries special to you. (Notice to state of Washington donors: state law places strict limits on your choice of remainder beneficiary. Please contact your gift planner or the ELCA Foundation office for more information.
You may avoid estate taxes and probate costs.
A charitable gift made now can remove assets from your estate and possibly reduce estate tax and probate costs.
How does a charitable gift annuity work?
This is how a charitable gift annuity worked for Arthur. As the son of a missionary, Arthur knows first-hand the sacrificial commitment of those who serve throughout the world on behalf of the church. He wanted to provide support for this important ministry and at the same time increase his income. Arthur, 75 years old, gave $10,000 to the ELCA in exchange for a charitable gift annuity. The ELCA agreed to pay Arthur $650 annually for life (an annuity rate of 6.5%). Of that, a portion is tax-free for several years (ranging from $477 to $494) and Arthur received a significant charitable tax deduction as well. Most importantly, Arthur experienced the joy of knowing that his gift will make it possible for a missionary to serve -- just as his dad had done several decades before.
Charitable Gift Annuity Application
Here to help
Our nationwide network of professional gift planning staff can help you explore a variety of possibilities for making a significant gift to ministry and fulfilling your legacy goals at the same time.
Any examples and information on this page are for illustrative and educational purposes only and should not be considered tax or legal advice. Please consult with your tax or legal advisor before proceeding with your estate plan. The Evangelical Lutheran Church in America, via the ELCA Foundation, currently does not offer charitable gift annuities to any persons in the states of Alabama and Hawaii.