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Charitable Gift Annuities, A New Option for Your Retirement Plan

By: Tim Henry, Director of Planned Giving

The nation slowly continues the long road of recovery from the “The Great Recession”, or the other assorted names it has been known in news headlines, but average Americans care little of the names used by the media they care about the impact the downturn has taken on the financial security their families.  As the country starts this economic recovery, one of the main areas of damage the average American is trying to repair is the damage done to their retirement plans.  However, uncertainty in the stock markets and low return on investment offered by investment vehicles like, five year certificates of deposits and 10 year Treasurys, both of which currently have rates of return around 2% annual percentage yield, have left many looking for a suitable alternative to traditional investment opportunities.  One such alternative option is a Charitable Gift Annuity, while not an investment but a gift, it can be used to provide a measure of income security during one’s lifetime and leave a charitable legacy.

A Charitable Gift Annuity as the name suggests is a combination of an outright charitable gift and the purchase of a fixed income annuity contract.  The terms of the annuity can be set to either provide immediate payment of income to the donor or defer payment of income for a period of time, for when a donor expects he or she will need additional income, such as during retirement.  Another, important factor to understand about a charitable gift annuity is that in order to qualify as a gift the rate offered by the charity must be lower than the rates offered by commercial insurance annuities. However, when compared to the rates of return of some commercial investment opportunities, charitable gift annuities provide attractive rates, as well as providing the donor the opportunity to donate to a cause in which they believe.  To paraphrase St. Paul’s sermon, “‘tis better to give than to receive,” and by making a gift though a charitable gift annuity you can both give and receive.

While calculating gift annuity rates is individualized to each donor, standardized rates based on age are set by the American Council on Gift Annuities, currently those rates provide a higher (4.7% for a person age 65, 6.8% for a person age 80) annual percentage yield rate than the 2 percent presently received by investing in certificates of deposit and Treasurys.

The current American Council on Gift Annuities rates took effect on January 1, 2012, however, the Salvation Army is still offering the higher 2011 American Council on Gift Annuities rates. Thus, under the current Salvation Army Charitable Gift Annuity rates, subject to individual circumstances, a person 65 years of age giving a single life charitable gift annuity could see a income return of 5.3%, and  a person 80 years of age giving a single life charitable gift annuity could see a income return of 7.5%.

It is important to act quickly to take advantage of the current rates offered by The Salvation Army Charitable Gift Annuities as the rates will be adjusted later this year to match the rates published by the American Council on Gift Annuities.

By taking advantage of the current rates and making a gift to the Salvation Army through a charitable gift annuity you will be able to both give and receive and help the Salvation Army with the mission of Doing the Most Good.

For information concerning current rates and other options related to charitable gift annuities please contact the Salvation Army Midland Division Planned Giving Department at 1-800-533-6865

Current American Council on Gift Annuity Rates for Single Annuity

Age

Rate

Age

Rate

Age

Rate

5-10

2.0

50

3.7

73

5.5

11-15

2.1

51-52

3.8

74

5.7

16-19

2.2

53-54

3.9

75

5.8

20-23

2.3

55

4.0

76

6.0

24-26

2.4

56-57

4.1

77

6.2

27-29

2.5

58

4.2

78

6.4

30-32

2.6

59

4.3

79

6.6

33-34

2.7

60-61

4.4

80

6.8

35-36

2.8

62-63

4.5

81

7.0

37-38

2.9

64

4.6

82

7.2

39-40

3.0

65

4.7

83

7.4

41-42

3.1

66-67

4.8

84

7.6

43

3.2

68

4.9

85

7.8

44-45

3.3

69

5.0

86

8.0

46

3.4

70

5.1

87

8.2

47

3.5

71

5.3

88

8.4

48-49

3.6

72

5.4

89

8.7

90+

9.0

Age

Rate

Age

Rate

Age

Rate

5-10

3.0

58-59

4.7

76

6.6

11-15

3.1

60

4.8

77

6.8

16-19

3.2

61

4.9

78

7.0

20-23

3.3

62

5.0

79

7.3

24-26

3.4

63

5.1

80

7.5

27-29

3.5

64

5.2

81

7.7

30-35

3.6

65

5.3

82

7.8

36-39

3.7

66

5.4

83

8.0

40-42

3.8

67

5.5

84

8.2

43-45

3.9

68

5.6

85

8.4

46-47

3.0

69

5.7

86

8.6

48-49

4.1

70

5.8

87

8.9

50-51

4.2

71

5.9

88

9.2

52-53

4.3

72

6.0

89

9.5

54-55

4.4

73

6.2

90+

9.8

56

4.5

74

6.3

57

4.6

75

6.5

Potential Single Annuity Rates for Salvation Army Charitable Gift Annuity

Answering the Call: Salvation Army EDS in 2012

NEW YEAR, NEW HOPE, NEW CHALLENGES: A Blog Series

This entry is from Anthony DiStefano, Director of the Midland Divsion’s Emergency Disaster Services

The April floods of the Mississippi River in Southeastern Missouri stretching from Cape from Girardeau to New Madrid; the floods of the same month of the Mississippi and Ohio Rivers in both Southwestern and Southeastern Illinois encompassing the entire lower portion of the State from Chester to Shawneetown; the Missouri tornados in Sunset Hills and Sedalia; the flooding of the Missouri River in July of the northeastern portion of the state all the way to the interior of the state at Washington; about three dozen auto accidents; an almost endless parade of residential and business fires; and the devastating Joplin tornado: The Salvation Army Emergency Disaster Services (EDS) department of the Midland Division was present at all of these events.

I expect 2012 to be much the same.

Canteens, trailers, communications equipment, food, beverages, clothing, temporary housing, organization, discipline, motivation, and the most important ingredient of all, the life-blood of The Salvation Army’s EDS department – our volunteers.

Even though each and every disaster is unique in its own right, the variables for dealing with each disaster change very little, and the goals never change.

The goal we are all striving for in the EDS department is getting as much help and support as quickly as possible to as many men, women and children affected by the disaster they are currently living through.

To have the EDS department prepared to meet any disaster, I have instituted monthly training across the Midland Division and in every Corps and Service Extension unit; required new crews to be formed in all Corps and Service Extension units and to work in tandem with existing crews from the same areas; begun to refurbish all canteens, vehicles and trailers, and replace those that have seen enough service already; started to acquire new, more powerful and farther-reaching communication equipment; instituted a recognition program for our volunteers, who are as I said earlier, the life-blood of The Salvation Army’s Emergency Disaster Services department. This is all done with the one goal in mind: Doing The Most Good.

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