How A Charitable Gift Annuity Works

You make a gift to the Mid-Shore Community Foundation -you can give cash, appreciated stocks, real estate, or other assets.

We set up a contract with you that combines immediate annuity payments with a deferred Charitable gift.

You receive a stream of income that is fixed, regardless of market conditions.

You also receive an immediate tax deduction for the charitable portion of your gift.

Upon your death, we set up a fund in your name, in the name of your family or business, or in honor of any person or organization you choose.

We handle all the administrative details-issuing annuity payments to you during your lifetime and, afterward, issuing annual grant awards to charities in the name of the fund.

Your gift can be placed into an endowment that is invested over time. Earnings from your fund are used to make grants addressing community needs. Your gift -and all future earnings from your gift- is a permanent source of community capital, helping to do good work forever.

More benefits

Income from your Charitable Gift Annuity may add up to more than the interest and dividends you earned from holding the assets. You can use this income to supplement your own lifestyle, or that of someone else: a sibling, a dependent parent, a friend, or a former employee. You or a loved one can start receiving annuity payments immediately, or defer them to increase your charitable income tax deduction. A portion of the income may be a tax-free return of principal, while some is taxed as ordinary income or capital gains. The amount of annuity paid and the tax deduction received depends on the age of the recipient and the current annuity rate (as established by the American Council on Gift Annuities).

A Charitable Gift Annuity reduces estate assets and may reduce estate taxes. Plus, it's easier to set up than a charitable trust and is backed by the general assets of the Mid-Shore Community Foundation.

MSCF Charitable Gift Annuity Policy

For more information on your options with Charitable Gift Annuities at MSCF, click here >



Learning from their parents’ philanthropy, Charlie and Betty Jean Wheeler of Easton have created their own legacy for charitable giving. Charlie, a retired estate lawyer and one of the founders of the Mid-Shore Community Foundation, has always felt that it was important to have a community organization that would have discretion in distributing funds to meet community needs. Betty Jean’s father, Dr. William Hammond, taught his family the importance of giving back to the community where they lived and worked. Both Charlie and Betty Jean have followed their parents’ footsteps, serving on a number of community boards.

 

When the Wheelers decided to retire, they explored ways to provide themselves with a pension to live on while still contributing to the community organizations for which they had a passion. By establishing charitable gift annuities for a number of local nonprofits, they were provided with the income and tax advantages they needed while they were living, but ensured that upon their death that gifts would then pass on to the organizations they cared about. Both Charlie and Betty Jean Wheeler encourage others to consider charitable gift annuities as a planned giving tool that can make a difference for the future.

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