Consider an annuity
Establishing an annuity is a one-time step that will provide cash rewards for years to come. It is a great way to give a donation and pay yourself back over time.
The Benjamin Rose Institute on Aging can use your gift now to serve older Clevelanders in need of mental health services, social work, and home health care. You will receive a part of your gift in a cash payment every year.
Your age = 68
Your one-time donation: $5,000
Your tax deduction the first year: $1,847
The amount you
receive every year for your lifetime: $275
Rate of return: 5.5%
“Charitable annuities are the gifts that keep giving. These vehicles allow individuals to support a charity, reduce their tax bill and secure a steady stream of payments for life. . . [W]ith guaranteed rates of 5.3% to 9.5% for individuals 65 and older, gift annuities compare favorably with cash-like investments. Five-year certificates of deposit are yielding 2.78%, for example, and the yield on [a 10-year Treasury] is 2.67%.”
The Wall Street Journal, February 3, 2009.
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