Giving with a Gift Annuity
Can I give an Annuity to fund the work of Jesus at the Abbey?
Yes, creating a Charitable Gift Annuity (CGA) is a great way to meet your giving needs to
Jesus' work, while creating a reliable source of retirement income for you. The story of the
gifts of the three wise-men serves to exemplify the importance of giving. Sure the gifts they
gave were valuable to the future of Jesus' ministry, but they were also symbolic of the trust
and faith these men had that the Holy Spirit would compound these gifts many time over
rewarding them and many others with untold miracles for generations to come. Like the faith
Queen Ester showed in risking all she had even her life itself, to provide the miracle of life to
others who had been placed in risk. We all need to way value of temporary earthly treasures
against the eternal treasures of the kingdom of heaven.
If you are retired or nearing retirement, a Charitable Gift Annuity is an attractive tax
savings plan. You make a gift to your church and receive guaranteed fixed payments for your
life. A portion of your annuity payment is tax-free allowing you to keep even more of the
income you earn. Your rate of return is based on your age.
It's never too early to start thinking about how your estate will be distributed.
Unfortunately, every day millions of dollars are lost through unnecessary taxes and estate
Your estate includes everything you own-your hard-earned money, house, real estate,
vehicles, life insurance, investments, and anything else you hold dear. These are the things you
want your family and their families to enjoy-the things that can make a positive impact on
their lives for many years.
Questions & Answers About Annuities:
What is an annuity?
An annuity is a contract between you and an organization to pay you a fixed sum of
money at set intervals for a specific period of time.
How is the sum paid to me determined?
The sum that is paid to you is determined by your age and life expectancy and the amount
invested. For example, if you make an investment of $50,000 and your life expectancy is 10
years, the return rate each year would be much higher that if your investment were $10,000
and your life expectancy is 30 years.
How does the Abbey's Gift Annuity Plan work?
When you purchase your annuity, the Abbey will set your money aside in a separate account
with instructions to purchase an annuity for you. The amount of your gift, which remains
after the annuity is purchased, is the present gift to the Abbey.
May an annuity be purchased on more than one life?
Yes. You may purchase "joint and survivor" refund annuities which will provide payments to
you or the person you name during your lifetime, and will continue to pay your surviving
spouse or other person after your death.
May annuity funds be withdrawn?
No. The annuity is an irrevocable contract that lasts for your lifetime.
Are the annuity rates the same for one or two lives?
The rate of return on your investment is higher for a single life annuity because the term of the
annuity is generally shorter.
Will I receive my total investment over the period of the annuity?
The Abbey prefers to participate in "refund" annuities. These annuities are designed to return
to you the amount of your gift over the period of the annuity. If you do not live out your full
life expectancy, the contract will end, unless it contains other provisions-for example, payment
to your surviving spouse for life. If you outlive your life expectancy, the annuity continues to
pay you the guaranteed amount until death.
What are the advantages of a gift annuity?
Generally, the advantages include increased spendable income and substantial tax savings.
Contact the Abbey for information regarding your particular situation.
What are the tax advantages?
You will receive a substantial income tax deduction for your gift to the Abbey. In addition, a
portion of the annuity payment to you will be tax-free because it represents a return to you of
previously taxed dollars. The amount of the tax-free return of capital will vary with your life
expectancy. As a rule, from 50 to 70 percent of the annuity income is non-taxable.
May I purchase more than one gift annuity?
Yes. Some people have several annuities. Some purchase one each year as a regular
investment in the work of the Abbey and in their own future.