Consider a Gift Annuity for LFL

By Jim Schroeder

Date: May 18, 2012

Category: Sharing the Message of Lutherans For Life

If you are a senior friend of Lutherans For Life you may want to consider establishing a gift annuity. This form of giving helps you use your God-given resources to achieve financial security and make a future gift to support the mission of LFL.

Receive regular fixed payments now! You can establish a gift annuity with as little as $5,000 in cash or securities. Your gift is made along with you signing a contract that entitles you to a lifetime of regular, fixed payments. If you wish, you may name a second person (usually your spouse) to receive these income payments after your death. At the death of the second income recipient (if one was designated), your gift annuity remaining value goes to LFL.

The amount of your payments is determined when you establish your gift annuity. Your payments are based on the size of your gift, your age, and the age of the person named as the second beneficiary, if you named one.

How a Gift Annuity works for you and Lutherans For Life: Here is an example of how a gift annuity works: John, age 80, and his wife Mary, age 80, decide to establish a Gift Annuity for LFL. They want to receive regular fixed income payments and make a gift to Lutheran For Life to support its mission after they die. They visit with me for assistance in establishing their gift annuity. I help them fill out their application and assist them in making their gift of $10,000 for their gift annuity. Based on their ages, they will receive a gift annuity rate of 5.7%. That means that they will receive annual annuity payments of $570 for their lifetimes. Since a portion of the gift annuity is a charitable contribution they will get an income tax deduction for the year they establish their gift annuity.

And, they enjoy even more tax savings! A little more than one half of their annual payment is tax free.

After John’s death, Mary will continue to receive the regular payments from their gift annuity. After her death, the remaining balance of on their gift annuity will go to Lutherans For Life. Generally this is about one half of their gift amount. If they live longer than their normal life expectancies, Lutherans For Life will receive less than one half of their gift.

If you would like to find out how a gift annuity could work for you contact me at or 515.490.7371. I can give you a personal written analysis that shows the exact amount of your gift annuity payments and the tax benefits of your gift.

Please keep in mind that once you establish your gift annuity, you may not add to or change the agreement. You may however make additional gift annuity agreements.

Remember, your age at the time you establish your gift annuity determines your gift annuity payout rate. The older you are, the higher your rate. There is no cost to establishing your gift annuity.

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