The Charitable Gift AnnuityThe charitable gift annuity offers you a way to make a significant gift to the Vermont Achievement Center (VAC) while continuing to provide income for your own future or others you wish to assist.
In exchange for a gift of cash, securities, or other assets, VAC agrees to pay one or two people (beneficiaries), chosen by you, a fixed sum of money each year for life. The older these beneficiaries are at the time of your gift, the greater the amount of annual income they will receive. A portion of each payment is tax-free, and if you give an asset that has grown in value since you purchased it, you will only owe capital gains tax on a portion of the appreciation.
If you and your spouse name yourselves as beneficiaries of a gift annuity to VAC, your benefits will include the following:
You will receive fixed payments in quarterly installments for life, a portion of which will be tax-free.
You will qualify for a federal income tax deduction in the year you make the gift.
Your estate may enjoy reduced probate costs and estate taxes and you will provide generous support for VAC.
We will be able to provide you with specific calculations, on an income you cannot outlive, that are based on your own personal interests and financial situation.
Gifts of Stock
Making a gift of stock to VAC can help the children and families in Rutland County we serve while providing you with attractive tax benefits, and, in some cases, a steady stream of income for life.
If you choose to make a stock gift to VAC, and are currently holding securities that have grown in value for more than a year, the tax benefits you receive by donating the stocks may be advantageous. Or, if you own shares that are not generating much income, you can use them to fund a planned gift that may be able to provide you with a higher level of income, tax benefits and the added benefit of allowing us to continue our mission.
There are several ways to give securities:
An outright gift of stock at its present market value – This option allows you to avoid paying any capital gains tax and gives you a charitable income tax deduction based on the stock’s fair market value (FMV). The income tax deduction is equal to the FMV, up to 30% of your adjusted gross income. Any excess of that amount can be carried over and deducted for five additional years, within the limitations of the law.
A gift of stock to fund a planned gift – By using securities to fund a planned gift arrangement, you can avoid gains tax, take a charitable tax deduction, and receive annual income for life.
Securities left by bequest – Leaving your securities to VAC in your will or trust reduces your estate taxes because the FMV is deductible from your gross estate.
For More Information
All inquiries regarding participation in a VAC Planned Giving program will be held in strictest confidence and place you under no obligation. If you do choose to establish a charitable gift annuity or give a gift of stock to VAC and we can be of assistance in helping you clarify your intentions with your attorney, tax advisor, stockbroker, or other advisor, please let us know.