A Charitable Gift Annuity to The Kennedy Center is a contract between you and The Kennedy Center. To establish the Charitable Gift Annuity, you transfer assets to The Kennedy Center in return for The Kennedy Center’s promise to pay a specific annuity amount to you (and/or to another person) for life. By making this gift, you are doing two things: purchasing an annuity for life and making a gift to The Kennedy Center.
There are two basic kinds of Charitable Gift Annuities:
Immediate Gift Annuities
Immediate Gift Annuities are payments to the annuitants that begin no later than one year after the date of the gift. Cash or securities are transferred to The Kennedy Center and The Kennedy Center then pays you or up to two annuitants you name, a lifetime annuity. The remainder passes to The Kennedy Center when the contract ends.
The advantage of this type of annuity is that you receive an immediate income tax deduction for a portion of your gift. Your payments are treated as part ordinary income, part capital gains income and part tax-free income. The gift benefits you now and The Kennedy Center later.
Deferred Gift Annuities
The Deferred Gift Annuity starts payments more than one year after the gift to build retirement earnings for the future. This type of annuity is recommended for younger donors. Beginning on a specified date in the future, The Kennedy Center begins to pay you, or up to two annuitants you name, fixed annuity payments for life. The principal passes to The Kennedy Center when the contract ends.
The benefits from this type of annuity are that the deferral of payments permits a higher annuity rate and generates a larger charitable deduction. You can also target your annuity payments to begin when you need them, such as retirement. The longer you defer payments, the higher the effective rate you will receive.
We recommend that you consult your tax advisor to determine additional tax benefits to which you may be entitled.
For more information, please contact The Kennedy Center Vice President of Development at 203.365.8522, ext. 2049 or email.