It's a gift that pays back: To the receiver, it’s a charitable gift. To the donor, it’s an annuity. A donor who makes an irrevocable gift of at least $10,000 to the Community Loan Fund can receive in return, for her or his lifetime or for the lifetimes of the donor plus one other person, a fixed-rate quarterly income payment. After the death of the final beneficiary, these funds are used by the Community Loan Fund to create opportunity and transform the lives of people with low and moderate incomes here in New Hampshire.
Maximum recommended rates: The Community Loan Fund offers the maximum rates recommended by the American Council on Gift Annuities. These rates vary according to the ages of the beneficiaries and whether one or two persons will receive the income payments. For example, a 75-year-old donor would receive a 6.3% return; someone older would receive more, someone younger would receive less. Check with our office to see what your rates would be. (Rates change on a regular basis, but once you establish a gift annuity, the dollar amount of your quarterly return doesn’t change for your lifetime.)
Tax benefits: Charitable gift annuities provide many federal tax advantages.
- Capital gains tax. If you establish the charitable gift annuity with appreciated stock, you pay no upfront capital gains tax.
- Federal income tax. A portion of your gift will be tax deductible in the year of your donation – usually between 40% and 50% of the total gift. Check with us for an analysis of your situation.
- Favorable treatment of income. Depending on the nature of your gift, some of the annual income you receive from a charitable gift annuity may be tax-free or taxed at a lower rate than is ordinary income. Again, we can tell you how it would work under your circumstances.
Quarterly payments: Income payments are made at the end of each quarter, either by check or direct deposit.
Eligibility: Income beneficiaries must be at least 65 years old.
Community impact: Your gift will build the Community Loan Fund’s “lending pool” for affordable housing, job creation, and child care in perpetuity.
Next steps: To discuss annuities or any other aspects of charitable gift planning, please contact Sally Hatch, Director of Investor Relations.