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Of the many methods that allow a donor
to make a substantial contribution to Radio Kansas,
and to receive income for life because of that donation,
the Charitable Gift Annuity is the most common and the
simplest. Unlike Trusts, which require legal action
to create, the Charitable Gift Annuity is simply a contract
between the donor and Radio Kansas. The contract is
executed through the Hutchinson Community Foundation,
where the Radio Kansas Endowment is housed. The donor
has two choices in the type of gift.
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Cash donations, at a minimum of $10,000, create a cash gift
annuity that pays the donor each year for the remainder
of the donor's life. The donor must be at least 60 years
of age. The rate of return is determined by several factors
including tax bracket, capital gains bracket (if applicable)
and age, according to guidelines set down by the American
Council on Gift Annuities. Since Radio Kansas retains the
principal, the rate of return tends to be much higher than
is available in other types of investments. This process
is irrevocable. Here are examples of possible return rates
and tax savings. Click the following links to see examples
of gift annuities.
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The second way to fund a Charitable Gift
Annuity is through the gift of appreciated property. This
can be real estate, stocks and bonds, art works, or other
valuables. In this method the donor must have the item appraised
before donating it to Radio Kansas (except for stocks and
bonds.) The donor's tax consideration is based on this appraisal.
In a typical case, Radio Kansas will issue a receipt for
20% of the value of the property as an outright gift. This,
of course, can be reported immediately as a deduction. The
annuity is then written for 80% of the appraisal value.
This gives Radio Kansas some cushion to cover the cost of
selling the property and to allow for variations between
the appraisal and actual sale of the property. Radio Kansas
will generally sell the property immediately upon its receipt.
Click the following links to see examples of gift annuities.
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The attraction of the Charitable
Gift Annuity is that it allows the donor to make a substantial
gift to Radio Kansas, and at the same time, save a great deal
on taxes. All of the types above result a sizeable current
tax deduction. In the case of a donated item, the donor will
also avoid some capital gains. Finally, the donor will also
receive funds for life from the annuity, a good part of which
are received tax-free.
There are many other models of Charitable
Gift Annuities that can be developed, including deferred ones
that don't start immediately, but result in an even higher
return rate. Donors can also specify that the income go to
someone else other than themselves. Radio Kansas will be glad
to work with you to look at these other variations.
For a Charitable Gift Annuity estimate based
on your personal information, please follow the link below
or call Sharon Webb at 1-800-723-4657. Radio Kansas does
not, under any circumstances, release this information to
anyone.
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For more information, contact Sharon Webb at 1-800-723-4657
or swebb@radiokansas.org. |
