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Gift Annuities -- "Give and Receive"
A prescribed charitable gift annuity can benefit you and the Alzheimer Society. Depending on your age, a charitable annuity allows you to give a gift, save tax and increase your income. Annuities can be particularly appealing for people age 70 and over.With a charitable annuity, you can receive a predetermined monthly amount for life without having to manage your investment.
| Here's how it works |
The benefits to you |
| In exchange for your gift, the Alzheimer Society buys a prescribed lifetime annuity for you from a licensed insurance company under the terms of the Income Tax Act.
The amount of your annuity depends on your age, gender, interest rate and the size of the contribution you wish to make.
After we pay for your annuity, the balance of your contribution becomes your gift to us. You may specify if you want us to use it immediately or invest it until it reaches the size of your original contribution. We'd also be pleased to work with you on designating your gift to a specific program or service.
Gifts that meet minimum requirements may be used to establish endowment funds. These continue to provide support for Alzheimer programs and services in perpetuity. |
- The rate will likely be significantly higher than what you're receiving from your guaranteed interest income.
- The annuity is guaranteed; it will continue as long as you live, no matter what happens to the economy or interest rates. Payments can be paid on a monthly, quarterly, semi-annual or annual basis.
- If you're married, you may choose a joint-and-survivorship annuity which continues as long as either spouse lives.
- Given the recent changes in the tax treatment for prescribed gift annuities, you receive a much larger donation receipt for tax credit purposes. And for most older annuitants, a sizeable portion, if not all, of the annuity payments will be tax free.
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Examples
- Rose Williams, age 76, contributes $10,000 for a prescribed gift annuity with the Alzheimer Society. She receives an interest rate of 8.1 per cent and $810.00 per year for life. The prescribed annuity cost was $7562.03 and therefore her donation receipt is $2437.97. Of her $810.00 annual payment, $651.90 represents the tax-free portion.
- Beth and John Ross, 72 and 75 respectively, contribute $10,000 and receive $655.40 (6.5 percent) for as long as either lives. Their donation receipt is $2216.50. Of their $655.40 annual payment, $487.74 is the tax-free portion.
(Note: Rates used are for illustrative purposes only and recommended by the Canadian Charitable Annuity Association (CCAA), January 2003. Interest rates may vary depending on insurance company rates offered at the time the annuity is purchased.)
Contact us
The professional staff of our Office of Gift Planning are available to provide, confidentially, the information you need to make a charitable gift annuity. Please contact us at plangiving@alzheimer.ca for more information and your customized illustration.
The Alzheimer Society understands that donors consider estate and gift planning to be a strictly confidential matter. Please be assured your enquiry will be handled in a manner that respects your privacy and maintains confidentiality. See our Privacy page for more information.
[Note: Information on this page is not intended as specific financial planning or legal advice. You should always consult your legal advisors, financial planners and family members when considering a planned gift.]
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