One of the reasons so many of our friends obtain gift annuities is because these giving vehicles work well in uncertain times. They are solid sources of income with locked-in payments for life that will never change.
Consider Anna Annuity, a fictitious 80-year-old widow and long-time supporter of MVL. Ten years ago she obtained a charitable gift annuity with a gift of $25,000. At that time, new gift annuities for individuals her age paid 7.2 percent annually for the life of the annuitant. This means that Anna began receiving quarterly payments of $450.
When the economy began to wobble and investment funds rose and fell with the times, Anna’s gift annuity payments continued without change. Every quarter she received $450 without fail.
Indubitable is a term meaning “not doubtful,” and that certainly describes the charitable gift annuity. The quarterly payments are reliable, steady, unchanging, and dependable.
The rates today will be different than they were 10 years ago, depending on one’s age and the economic climate. But once the gift annuity is established, the payments will stay the same until the day the annuitant dies.
The other thing that makes gift annuities indubitable is the sure-fire help they provide MVL. When the annuitant dies or decides to discontinue receiving the payments, the money goes to MVL to support our mission. Thus, a person who receives payments from a gift annuity also has the satisfaction of knowing that someday the annuity will benefit MVL.
There are other benefits to obtaining a gift annuity, including an income tax charitable deduction and partially tax-free payments.