Now's a great time to establish a Charitable Gift Annuity

Donors 55+ can make a charitable gift and secure a life income stream,
but rates will drop July 1st.

If you create a charitable gift annuity with The Minneapolis Foundation before July, you'll receive a higher return for your contribution (see rates below). There's still time to lock in the current rates to maximize your fixed income payments.

In exchange for charitable gift of $5,000 or more, a donor receives a fixed stream of income for his or her lifetime (or for the lifetimes of two people), backed by the unrestricted assets of The Minneapolis Foundation.

The older the donors are, the higher the annuity they receive. They can even defer receiving payments until a later date – perhaps upon retirement. They will also receive a partial charitable income tax deduction, and some of their annuity payments may even be tax free.

A charitable gift annuity is a simple contract between a donor and the Foundation. Donors make a charitable gift and we promise to pay them (one or two people) a specified amount every year as long as they live.

For individual donors

By acting now, you can maximize your annuity payments. The remainder of your gift will be distributed to meet the most urgent needs of the community or can provide an endowment for your favorite charity. We can help you take advantage of this time sensitive opportunity.
Learn more

For professional advisors

For individuals concerned about market risk and outliving their assets, charitable gift annuities are an attractive choice. Let us help your clients take advantage of this time sensitive opportunity. Learn more

For nonprofits

The Minneapolis Foundation can help your donors take advantage of this time sensitive opportunity. By acting now, your donors can maximize their annuity payments. The remainder of their gift becomes an endowment fund that will support your organization permanently. Learn more

View annuity payment rates by donor age:

Current rates: for one individual     for two individuals
Rates beginning July 1st: for one individual   for two individuals

Request a customized gift illustration from The Minneapolis Foundation -- for yourself, for your organization's donors, or for your clients.

Download our Planned Gift Illustration Request or contact Mary Ellis Peterson at (612) 672-3859 or mepeterson@mplsfoundation.org.

In the spring of each year the American Council on Gift Annuities meets to review economic conditions and projected life expectancies, and recommends charitable gift annuity rates for the upcoming year.

Although the rates haven't changed for four years, this year the ACGA suggested that the rates be lowered. Most charities follow the recommendations of the ACGA in setting payout rates for gift annuities, and The Minneapolis Foundation is no exception. Rates are set based on a number of actuarial assumptions, the first being the intention that at the end of the gift annuity term, the residuum going to charity will be at least 50% of the initial gift.

These illustrations clarify the benefits of Charitable Gift Annuities.

A Smart Investment - Ann would like a better rate of return than she can get on a certificate of deposit. She's 80, so with a charitable gift annuity, she can get an 8% return for as long as she lives. On a $10,000 CD, her annual check could increase from $300 to $800, and some of that is tax-free. Within a decade, she can recoup most of her tax deductible contribution, while supporting a charitable cause.

Tax Deductible - Anton wants to supplement his mother's income . She's 83, so she can get $220/quarter if he gives $10,000, ¾ of which is tax-free. He gets a tax deduction, too.

Flexible - Sandra got a great bonus this year, and she'd like to set it aside for retirement. But she doesn't know when she wants to retire. She can set up a flexible deferred charitable gift annuity and decide later whether to begin taking it at 55, 60, or 65. The longer she waits, the higher the payout rate will be.

Secure - Janetta wants to make a charitable gift, but she's worried about the economy. Will she have enough to live on if she lives a long time? She can set up a gift annuity that will pay her a fixed amount annually no matter how long she lives, and still make a gift that will go to charity when she is gone. She gets a tax deduction right away and part of her annuity is tax-free.

To learn more
or to request a customized gift illustration please contact:

Download our Planned Gift Illustration Request or contact:

Mary Ellis Peterson
Gift Planning Officer
(612) 672-3859
mepeterson@mplsfoundation.org

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