Charitable Gift Annuity
The Charitable Gift Annuity is a planned gift that is arranged through the Christian School Foundation’s partnership with Christian Stewardship Services. It enables Christian school supporters to support a Christian school or schools with a substantial gift and yet enjoy an excellent income for life – in addition to a number of other benefits.
Your gift is invested ethically and responsibly by Christian Stewardship Services and you receive a fixed regular income based on your age and the rates in effect when the annuity is arranged. This income stream ends at death and the portion remaining in the investment is gifted to the Christian School Foundation for the benefit of Christian education or your choice of designated schools. Gift Annuities can also be arranged for couples. A large portion of the income you receive is tax exempt and all donors qualify for a one-time charitable donation receipt of at least 20% – and at times in excess of 30% – of the annuity value. This is a significant benefit that will reduces taxes owing in the year the gift is arranged. Generally, individuals or couples aged 60 and over benefit the most from a Charitable Gift Annuity. See below for examples.
Benefits and features of a Charitable Gift Annuity
- This is an irrevocable gift
- You have guaranteed, excellent income for life
- There is a significant up-front tax receipt
- Any income you receive is partially or significantly tax exempt
- This gift is not subject to probate fees
- This income stream is eligible for pension credit on your income tax return
What is the Annuity Rate?
Upon request, Christian School Foundation will provide a written quotation outlining the payments to you based on your specific age (or ages in joint annuities), the choice of payment frequency and the dates of payment available. The quotation will also identify what portion of the payment is taxable and non-taxable. It will also include the amount of the onetime charitable tax receipt that will be issued.
Sample Quotes – supplied by Christian Stewardship Services in July 2018
- A single male, 80 years of age with an initial investment of $20,000 would receive a one-time charitable tax receipt of $5187.98. He would also realize a 6.71% return on his investment resulting in an annual payment for life of $1342 of which NONE is taxable.
- A single female, 75 years of age with an initial investment of $20,000 would receive a one-time charitable tax receipt of $4351.74. She would realize a 5.62% return on her investment resulting in an annual payment for life of $1124 of which $17.62 is taxable.
- A couple, both 80 years of age, with an initial investment of $20,000.00 would receive a one-time charitable tax receipt $4000. They would also realize a 5.6% return on their investment resulting in annual payments for life of $1120.19 of which none is taxable. These payments would continue until the death of the surviving spouse.
What Guarantees the Income?
The security of the annuity payments is guaranteed by the existence of an investment fund. In addition, a special annuity reserve is held as an extra special reserve for the future. Both funds are identified separately from all other funds at Christian Stewardship Services. As required by federal legislation, a qualified actuary periodically reviews both the reserve requirements and the investment portfolio.
What about the Issuer?
The Christian School Foundation’s gift annuities are issued by Christian Stewardship Services; a charity registered with Canada Revenue Agency (formerly Revenue Canada and CCRA) under BN# 10692 0309 RR0002. Christian Stewardship Services was established in 1976 as a federal non-share corporation. Please contact the Foundation for more information.