Gift Annuities

Steps in Negotiating and Finalizing Charitable Gift Annuities can be found below.
You can also find this document here.

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Steps in Negotiating and Finalizing Charitable Gift Annuities

 

  1. Collect data for charitable calculation:
  2. Birthdate(s) of proposed annuitants
  3. Single life, joint and survivor, successive
  4. Value and type of asset to be contributed
  5. If a non-cash asset, donor’s cost basis of the asset
  6. Preferred payment frequency -quarterly, semi-annually, annually                                                                                                                        
  7. Forward all information to Unity Foundation office for calculation; may wish to request calculation at the recommended rate and at one or more lower rates.
  8. Provide calculation information, contract, disclosure statements, etc. to donor and donor’s advisor.  Involvement of a “professional advisor” is critical.  Gift Annuities can be misunderstood and create problems with heirs after death of donor.
  9. Discuss ultimate use of the remaining value at the last annuitant’s death.  Be sure the donor understands that only the remaining value can be used to create or add to a named fund, not the original value contributed for the annuity.  Have them sign the addendum “Specify Use of Remainder.”
  10. Collect 2 or 3 copies of original signed contract, disclosures, “Specify Use of Remainder”.  One for each party- the donor, the Unity Foundation and the advisor.  Unity Foundation will provide a charitable receipt for donor’s tax preparation. 
  11. Unity Foundation will administer the annuity and make payments to the annuitant according to the agreement.  Unity will also provide the 1099 to the donor.