Gift Planning

Charitable Gift Annuities
(Complete gift description)

Of all the gifts that pay you back, the charitable gift annuity is the simplest, most affordable, and most popular. You make a gift to the Zoological Society of San Diego and in return, we agree to make fixed payments to you for life. The gift agreement is a simple contract between you and the Zoological Society of San Diego. Your payments become one of our general obligations, fully backed by all our assets. At your death, we apply the balance of the gift annuity to the program you designated when you made your gift.

Gift annuities offer attractive tax benefits:

1. First, you receive a charitable income tax deduction for creating a gift annuity, based on the fair market value of the assets you contributed minus the present value of the life-income interest you retained.
2. Second, if you fund your gift annuity with appreciated securities, no upfront capital gains tax is payable. Only a portion of your capital gain will be recognized, and the tax will be spread out over your annuity payments. The result? You can contribute appreciated but low-yielding assets and put the entire amount of your gift to work earning lifetime payments for you.
3. Third, a portion of your annuity payments will be taxed at a low 15% capital gains rate if you created your gift with appreciated securities. Another portion will be treated as the tax-free return of principal. Only the balance of your payment is taxed as ordinary income to you. This tax treatment, not available on other types of life-income gifts, increasing the effective yield of your gift annuity.
   
   Note: The IRS provides that the capital gain and tax-free income benefits are in effect during your life expectancy. If you live longer, the entire annuity payment will be taxed to you as ordinary income.

Planning points

• A charitable gift annuity at the Zoological Society of San Diego can be created with a gift of $25,000 or more. Gift annuities bring the benefits of a life-income gift into reach for many donors.
• Your gift annuity can make payments to a maximum of two people, each of whom must be at least 55 years of age when the payments start.
• Gift annuity rates are partly determined by the age of the beneficiary. Younger donors may find planning benefits in a deferred gift annuity.

For more information

Email us, complete the personal illustration form, or call us at (619) 744-3352 so that we can assist you through every step of the process.