LIFE INCOME GIFTS
Charitable gift annuities
A charitable gift annuity is one of most popular ways to support The Salvation Army's ministry while receiving an annual income and other tax benefits. A charitable gift annuity is simply an agreement between you and The Salvation Army: you agree to make a current contribution of cash or appreciated securities; in exchange, The Salvation Army agrees to pay you a specified annual income to one or two beneficiaries for life. The payout rate is determined by the age of the beneficiaries (generally you or you and a loved one).
The Salvation Army uses the charitable gift annuity rates recommended by the American Council on Gift Annuities. View a current gift annuity rates calculator.
You may choose to defer the first payment on a gift annuity and receive an increased annual income and a larger federal income tax deduction. A deferred charitable gift annuity is especially attractive for those who are in need of an income tax deduction now but may need income later (perhaps after retirement).
Benefits to you:
You save on income taxes with an immediate charitable income tax deduction for the gift portion of your contribution. You also receive a lifetime income at an attractive rate that is partially tax-free and you avoid probate. A charitable gift annuity also reduces your estate for tax purposes with charitable gift and estate tax deductions.
Pooled income fund
A pooled income fund is another easy way to support The Salvation Army's ministry and obtain an annual income and other financial benefits. A simple contract between you and The Salvation Army, a pooled income fund provides income at market rates rather than a percentage payout determined by your age. Your contribution to The Salvation Army's Second Century Pooled Income Fund is invested together with similar gifts. Each year, you receive your share of the earnings, which is taxable as ordinary income.
Benefits to you:
An investment in a pooled income fund saves on income taxes with a charitable income tax deduction. You also receive income for life that has the potential for growth along with the market. By giving through a pooled income fund, you can avoid probate and reduce your estate for tax purposes with charitable gift and estate deductions.
