CHARITABLE GIFT ANNUITIES
Lakota Language Consortium's charitable gift annuities are simple in design, easy to establish,
and may just be the right way for you to lock in a future gift where the need is greatest.
Charitable Gift Annuities are one of most popular gift vehicles in the country, allowing people to provide for their own financial security while having the opportunity to support charity.
Once you have made your gift, Lakota Language Consortium does the rest. You receive a check in the mail, or a deposit in your bank account, at a fixed rate for the rest of your life. (Payments can be made annually, semi-annually, quarterly, or monthly, assuming each payment is at least $100.)
Charitable deduction for making a gift.
Part of your annuity is designated by the IRS as a charitable gift. Therefore, if you itemize deductions, you receive a charitable income tax deduction. If the full deduction cannot be used for the year you make your gift, the unused portion can be carried forward for up to five years.
You may avoid estate taxes and probate costs.
A charitable gift made now can remove assets from your estate and possibly reduce estate tax and probate costs
Income tax savings on annuity payments.
Usually some portion of your annuity payment is a return of principal throughout the years of your life expectancy. This portion is tax-free to you. If you fund your annuity with securities owned more than 12 months that have appreciated (valued more now than when purchased), some of your annuity payment may be taxed at your capital gain rate, while a portion of the tax on capital gain may be completely avoided.
(Notice to state of Washington donors: state law places strict limits on your choice of remainder beneficiary.) Please contact your gift planner or the LLC Foundation office for more information.
How does a charitable gift annuity work?
This is how a charitable gift annuity worked for Jeffery. As the son of a teacher, Jeffrey knows first-hand the sacrificial commitment of those who serve throughout the world on behalf of education He wanted to provide support for an important organization and at the same time increase his income. Jeffery, 75 years old, gave $10,000 to the LLC in exchange for a charitable gift annuity. LLC agreed to pay Jeffery $650 annually for life (an annuity rate of 6.5%). Of that, a portion is tax-free for several years (ranging from $477 to $494) and Jeffery received a significant charitable tax deduction as well. Most importantly, Jeffery experienced the joy of knowing that his gift will make it possible for endangered languages to be saved -- just as his mother had taught.