What is a gift annuity?
A gift annuity is an agreement between you and a qualified organization or institution. The Cabrini Fund, Inc. (CFI) is the legal issuer of gift annuities for the Cabrini Mission Foundation and its sponsored organizations. The donor transfers assets to the organization and receives fixed payments for the rest of his/her lifetime and/or the lifetime of another person, if desired.
Are there tax benefits?
Yes. Since a portion of your gift will be used for charitable purposes, you are entitled to a federal (and perhaps state) income tax deduction in the year you make your gift. Part of each payment is tax-free for a period of years as well.
What determines the size of each payment?
A number of factors, including the amount you place in the gift annuity and your age at the time the annuity is created.
Why does my age affect the rate of payment I receive?
Part of the amount you transfer is returned to you over your life expectancy, and life expectancy changes with age . Generally, the older you are when your gift annuity begins, the higher your rate of payment.
Does that mean my payments change from year to year?
Not your rate of payment on a particular gift annuity agreement. The rate is set and fixed when your annuity begins. But if you give money for additional gift annuities-as many people do-the rate will generally be higher for each agreement made in subsequent years.
Can I outlive my payments?
One of the attractive features of the gift annuity is that you normally cannot outlive its benefits. The Cabrini Fund, Inc. (CFI) is obligated to make payments for as long as an annuitant (a recipient of payments) lives.
Are the payments affected by stock market fluctuations?
No, they cannot normally be lowered, cancelled, delayed, or suspended, regardless of the stock market or the national economy. All the net assets of the Cabrini Fund, Inc. stand behind your agreement.
Exactly how can I benefit another person through a gift annuity?
You can designate a loved one to receive the payments either with you, instead of you, or only following your death. This can result in a double gift-one to Cabrini Mission Foundation and another to a relative or special friend.
Is the payment the same if more than one person receives payments?
Not usually. Annuity payments may be made for the lives of as many as two persons. Since the period of their combined life expectancies is typically longer than one person’s life expectancy, the rate of payment will be somewhat lower. Payment rates for two-life annuities are available upon request.
Can I give securities rather than cash to set up a gift annuity?
Yes. Often the tax benefits are even greater if the securities have increased in value because you may avoid the tax on a portion of the capital gain in the property. If you give a low-yielding asset, you may be able to increase your income, since the gift annuity may pay more.
Will my gift be part of my estate?
No, If payments are made to you only, the gift portion goes directly to Cabrini Mission Foundation, thus avoiding estate taxes and probate costs. Some estate tax may be due if payments are made to a survivor other than a spouse.
Can I arrange for a gift annuity through my will?
Yes. You can specify in your will that part of your estate be used to create a gift annuity. Many people do this to ensure supplementary income for a loved one. Tax savings can result as well.
Do I have to wait until I retire for the payments from a gift annuity to begin?
No, payment may begin at any time.
How can I begin a gift annuity?
A gift annuity can be created with minimum effort. The first step is to contact Cabrini Mission Foundation for current benefits and a gift annuity application by calling 212.995.7003, or emailing firstname.lastname@example.org