MOOSE CHARITIES
Making a Difference in the
Lives of Children and Seniors

Useful Tools for Giving and Receiving Gifts...For Life

Toward Understanding Charitable Gift Annuities

By JILL KENNEDY
Director of Development
Moose Charities

> Charitable gift annuities (CGAs) can be a useful tool for both a donor and a charity. It’s important to understand how these giving plans work.

• CGAs are suited for older donors who desire fixed payments for life.
  
  
• At Moose Charities, the minimum age for participation is 70 years old.
  
  
• The smallest amount required for investment in our program is $10,000.

By definition, a charitable gift annuity is a contract between a donor and a charity.

The basic idea for a charitable gift annuity is that in exchange for a gift of cash or property, Moose Charities agrees to make fixed payments to one or two individuals for life. The frequency and amount of payments are determined at the time the gift annuity is started. The payments will never change and will continue regardless of how long you and/or the other recipient lives.

The benefits to donors include:

1. The annuitant (or annuitants) receive fixed payments for life.
   
   
2. A portion of each gift annuity payment to the donor is tax-free.
   
   
3. Annual gift annuity payouts are based on the donor’s age(s). Higher rates are paid to older donors.
   
   
4. The donor(s) receives a current federal income tax deduction.
   
   
5. The payout rate is not based on Moose Charities’ rate of return. We use the American Council on Gift Annuities’ rate schedule.
   
   
6. A pre-determined portion of each gift annuity payment is tax-free. The remaining amount of each payment is taxable at either the ordinary and/or capital gain rates.
   
   
7. A contract can begin making payments immediately or payments can be deferred for at least one year.

When participating in a charitable gift annuity, the following are some points to consider:

1. Once invested in a CGA, funds cannot be withdrawn. The agreement must be permanent to qualify for the attractive tax benefits.
   
   
2. Once executed, changes cannot be made in the CGA with regard to the named annuitants.
   
   
3. Moose Charities retains, for charitable purposes, the amount not required to make annuity payments.
   
   

Editor’s note: The author is neither an attorney nor an accountant, and does not purport to offer either legal or tax-advisory services. For advice and assistance in specific cases, you are urged to obtain the services of an attorney or other professional financial adviser.

Donor Creativity:
A Case History

In Honor of ’36 Mooseheart Grad, Friends Fund a Cosmetology Redesign

> CHALLENGE:

A dearly loved friend passes away. Bev Heppler wanted to create a lasting memory of her friend, but was unable to make a major gift.

HISTORY:

Edith Ida Calabrese was born on Feb. 23, 1918, in West Hoboken, NJ. At the age of 3, her father died and her mother became unable to care for the children. In 1923, Edie and her brother came to Mooseheart from Plainfield, NJ. Edie graduated from Mooseheart in 1936 with vocational training in beauty culture. She married Jerry Clucas and lived in Hollywood, FL. The Clucases had no children. In Florida, Edie met Bev and they became friends. Edie operated a beauty shop in Florida for many years; in 2006, at age 88, Edie died.

DONORS:

Because of their friendship, Bev had several contacts with Edie’s nephews and other friends. After Edie died, these individuals joined forces to make a donation that would make a difference. In essence, this unique group of donors created their own “major gift.”

CONCEPT:

Bev sincerely wanted to make a charitable gift to Mooseheart that would also honor the memory of her friend. She contacted everyone she knew who would be interested in making donations for a memorial to Edie. The individual amounts were not always large, but when added together, Bev found that she had accumulated a sizable sum. As Bev contemplated how best to use her gathered resources, she remembered that Edie had graduated from the beauty culture program at Mooseheart.

Working with Moose Charities and with Mooseheart Executive Director Scott Hart, this dynamic group of donors with the same goal decided to direct their combined funds in Edie’s name. This would be used to renovate stations at the Cosmetology Laboratory at Mooseheart High School.

After Moose Charities spoke with Hart and cosmetology teacher Dodie Whitmer, it was decided that an almost complete renovation would be possible. Dodie enlisted the help of the students and everyone pitched in to search the Internet for appropriate modern patron chairs, mirrored stations, manicure tables and wall-mounted units. Much to everyone’s delight, the project came in very close to the budget that Bev had envisioned.

The equipment was ordered and the paperwork was processed for the complete gift. Mooseheart maintenance individuals installed the stations and the lab was ready in January.

A plaque will soon stand proudly on the wall of the Cosmetology Lab. This visual remembrance is a tribute to Edie Clucas, Bev Heppler’s dear friend.

OUTCOME:

Donors CAN have influence over how their gifts are used. With creativity and the knowledgeable support of Moose Charities, you can custom design your gift. In a fashion similar to Bev Heppler, you can make a small idea into a big impact. Donors’ gifts can be designated for Mooseheart or Moosehaven. Think about the possibilities. We believe creative gift ideas are a win-win situation for you, as the donor, and Moose Charities, as the recipient.

For more information, contact Moose Charities at 630-966-2200.