What is a gift annuity?
A gift annuity is an irrevocable charitable contribution that provides you with annuity payments for the rest of your life while also providing vital financial support to the National Kidney Foundation.
Is a gift annuity right for me?
Yes! If you're at least 60, have a minimum of $5,000 to contribute and are looking for:
- A simple, worry-free, lifetime payment for yourself or a loved one at a competitive rate of return.
- Generous tax savings both now and later.
- The satisfaction that comes from knowing that you are giving your support to the National Kidney Foundation even beyond your lifetime!
Will my rate of return be higher than in a bank savings account?
Most likely, yes. Depending upon your age, rates can be as high as 11.3 percent. And the rate set at the start of a gift annuity is permanent for your lifetime - it will never be reduced regardless of economic fluctuations. When we prepare your personal proposal, we will tell you what your rate of return is as well as other pertinent information such as tax treatment of your gift and payments.
Does a gift annuity offer special tax benefits?
Yes. A portion of your gift annuity income is tax free for your life expectancy as reflected in IRS tables. You are also entitled to a charitable income tax deduction on your original gift in the year given.
And, if you fund your annuity with securities which have increased in value that you have held for more than one year, you can minimize capital gains tax as well as receive a tax deduction for your gift.
We'll furnish you with complete tax information each time you request a personal proposal or establish a gift annuity.
Is a gift annuity completely safe?
Absolutely! We set aside an adequate reserve to ensure lifetime payments to our annuitants and our reserves exceed the legal requirements of even the most stringent states.
The Perfect Gift for You and Others
How does a gift annuity help me and the National Kidney Foundation at the same time?
After setting aside adequate reserves for payments, a portion of your gift can still be used immediately to support our many programs that provide support and assistance to those affected by kidney disease as well as promoting organ and tissue transplantation.
After your passing, the remaining portion of your gift will also be used as a legacy to continue to help those benefiting from the services provided by the National Kidney Foundation. Many of our annuitants have found that they can make a larger gift than they ever thought possible by participating in the gift annuity program.
What are the different kinds of gift annuities?
There are four basic types of gift annuities: Single-life, Two-life, Deferred and Single-life annuities for another. For a detailed explanation of each, please request our gift annuity brochure by contacting your local affiliate or the National office at 1-800-622-9010.
How will I receive my regular payments?
You or your designated annuitant will receive regular payments promptly by mail or direct deposit four times a year at the end of each quarter.
Establishing Your Gift Annuity
Mr. B. bought stock in a computer company many years ago for $1,000. That stock is now worth $50,000. The stock only pays dividends of about 3 percent per year.
Mr. B. decides to donate the stock to the National Kidney Foundation for a gift annuity. Such a gift offers favorable capital gains tax treatment on the $49,000 of appreciation on the stock.
At the current rates, based on his age, the interest paid on his gift annuity will be 6.3%. This amount will never go down and payments will continue for his lifetime. In addition, he will receive a current income tax deduction and the asset will be removed from his estate, thereby helping to reduce his potential estate taxes. Upon his death, any funds remaining from the gift will be used by the National Kidney Foundation for its programs.
How can I establish a gift annuity?
With a minimum contribution of as little as $5,000, you can establish your National Kidney Foundation gift annuity. There's no maximum age limit, no physical examination required and no waiting period - it's as simple as signing your name and forwarding your gift to us. Simply fill out and return this gift annuity information sheet (PDF* 38 KB) and indicate whether you would like for us to draw up a personal proposal or whether you would like to send a gift now and establish a gift annuity right away. We will immediately begin working on your request. Note: There are a few states where the NKF cannot issue gift annuities because of local regulations. We will promptly inform you if this applies to your situation.
Can I withdraw my gift annuity at a later date?
In order to guarantee you lifetime payments and to qualify for an income-tax deduction for the charitable portion, the gift annuity is irrevocable and cannot be withdrawn.
Can I become a member of the National Kidney Foundation's Heritage Club by participating in the annuity program?
Absolutely! All of our annuitants automatically join the other generous supporters who have provided for the NKF through their estate plans.
For more information, contact the your local NKF Affiliate or call the National Kidney Foundation at 1-800-622-9010.
The information on this page does not constitute legal or financial advice and should not be relied upon as a substitute for professional counsel. The National Kidney Foundation encourages you to seek professional legal, estate planning and financial advice before deciding on a course of action. The examples in this brochure are based upon representative gift annuity rates.