Giving to The Arc through Annuities A Charitable Gift Annuity You can transfer cash or securities to The Arc of Massachusetts and receive a lifetime annuity payment from the gift. The rate is based on your age and you receive a charitable income tax deduction in the year of the gift up to the contribution ceilings previously mentioned. You defer capital gains tax on the transfer of appreciated securities to The Arc of Massachusetts until you begin to receive annuity payments. The annual payment is based on the fair market value of the gift. A portion of each annuity payment is tax-free for both state and federal purposes for a period of years (based on life expectancy). This gift annuity is ideal if you want a fixed rate that will never change.
A Deferred Gift Annuity
You can transfer cash or securities to The Arc of Massachusetts but defer receiving lifetime annuity payments until a future date. The annuity rate is based on your age and the number of years before the first payment. In all cases, the longer the deferral, the higher the rate. You receive a charitable income tax deduction in the year of the gift based on your age and the deferral period. There is no immediate capital gains tax on the transfer of appreciated securities to The Arc of Massachusetts. This type of gift annuity is ideal if you do not need income currently, but wish to establish an income for retirement while receiving an income tax deduction immediately.
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