When you want to help the Ohio Environmental Council, but a cash gift would leave you short of future income, a Charitable Gift Annuity may be a great option. It allows you to make a significant contribution to OEC while maintaining your future financial security. Such gifts will often slash your capital gains taxes, federal estate tax and inheritance tax, and may provide a charitable deduction for your income taxes.

The OEC can work with you in partnership with a regional foundation such as the Columbus Foundation or a lending institution for the development of Charitable Gift Annuities. A Charitable Gift Annuity is a contract between you and the foundation or bank. With a minimum cash investment of $10,000, or if you own stocks which provide low or erratic income, you could donate the stock to the OEC through a charitable gift annuity. In exchange, you would receive proceeds from that investment through guaranteed payments over a fixed period of time at a specified rate. The OEC is designated to receive the annuity's remaining value upon the donor's passing. The rate of return is based upon your age: the older you are, the higher the rate. For example, a 70-year-old could receive about 7% of the amount of the gift each year; a 90-year-old could receive as much as a 12% return.

While a donor of any age can create a Charitable Gift Annuity, age 60 is the earliest time that the guaranteed payments can begin. If a younger donor makes the investment, it is called a Deferred Gift Annuity because the payments are deferred, to start at a future date. Because this deferral allows the money to grow untouched for a longer period of time, the donor's payments are calculated at a higher rate of return.

Creating a Charitable Gift Annuity is a practical investment because it allows the donor to take an income tax deduction at the time of the cash transfer. A Deferred Gift Annuity is a great option for younger donors because it allows the investment to be made at a time when the donor is enjoying higher earnings. The donor is able to make a more sizeable investment and reap the benefit of a greater income tax deduction. The deferred payments provide the donor with an additional source of income during retirement, when it is most needed.

If you are considering a gift, we welcome the opportunity to sit down with you and your legal or tax consultant or financial advisor to ensure that any decision is fully advised. Please contact Jodi Segal, Director of Development, at jodi@theOEC.org or (614) 487-7506.