A charitable gift annuity is a contractual arrangement with a commercial annuity provider. It will provide you with a tax-preferred annual income guaranteed for life or a specific number of years. Charitable gift annuities are structured in the same way as regular commercial annuities; however, they offer distinct advantages due to a charity’s tax-free status. 

Charitable Gift Annuities gifts might appeal to you if: 

  • You have accumulated wealth and do not need this portion of your capital to leave for your surviving spouse or heirs.
  • You are concerned about the amount of tax you pay on your interest-bearing investments.
  • You wish to increase your after-tax disposable income.
  • You like the security of fixed, guaranteed income; or
  • You like worry-free management of your investments.

The benefits of giving Charitable Gift Annuities are: 

  1. You pay less tax. Each annuity payment is a blend of capital and interest - the capital portion of your payment is non-taxable. 
  2. The rate of return is fixed.  Depending upon your age, a charitable gift annuity can provide you with a higher rate of return than those available on similar investments such as GICs.
  3. It's customizable. Your payments can be direct deposit, and you can choose the frequency. You can purchase an annuity now and defer the payments to a later date.  
  4. The Canadian Life and Health Compensation Corporation insures your payments, which guarantees annuity payments up to $2,000/month in the event of an insurance company failure.
  5. You receive a donation receipt in the year you purchase the annuity – this further offsets taxes owed for that year. 

How to Give Chalice a Charitable Gift Annuity (Two Steps) 

Step one: 

  1. Contact us and let us know that you want to give this way. For us to proceed, we will need your name, birth date, the amount you would like to give, and whether you would like the annuity to be a single life annuity or joint with your spouse. 

Note: Your age(s) and the amount of your contribution will determine the size of your income payment. Usually, the older you are, the higher your payment. 

  1. We will contact one of our partner annuity brokers who will explore the variety of options available in the marketplace, identifying the best rate across a wide variety of financial institutions.
  2. We will send you the top annuity quotes once we have received them.

Step Two: 

  1. You donate a lump sum to Chalice. 
  2. We then purchase an annuity from a reputable life insurance institution on your behalf. 
  3. After we pay for your annuity, the balance of your contribution (a minimum of 20% of the total amount donated) becomes your gift to us.
  4. We issue a charitable donation receipt for this amount. 
  5. The annuity payments are made directly to you, or deposited into your bank account, by the annuity provider.
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As you consider a gift to Chalice, please consult a trusted professional to consider your financial goals, review your tax situation, and ensure your gift is right for your circumstances.

Contact our Planned Giving and Major Gifts team (Peter, Wilson, or Catherine) at 1-800-776-6855 or planagift@chalice.ca

Chalice (Canada) Charity Registration Number 13759 1012 RR0001

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