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The VCCF Charitable Gift Annuity

Sharing Your Legacy Securing the Future of Ventura County

A Charitable Gift Annuity with the Ventura County Community Foundation can provide you with all of these benefits, and more, while ensuring that your charity of choice receives a gift to help secure its future.

VCCF’s Gift Annuity Program is available to all donors in Ventura County to help them invest in local nonprofits while receiving a stable source of income.

What is It?

A charitable gift annuity is a legal contract under which VCCF agrees to pay you a fixed sum of money each year for the rest of your life in return for a gift of cash or securities. You receive an immediate charitable tax deduction in the year the gift is made and may choose to receive the income immediately, or defer your payments until a later date. The minimum amount for a VCCF Charitable Gift Annuity is $10,000.

What are the Benefits?

  • Increased Income
    Charitable gift annuity rates are often higher than the returns you may be receiving from your stocks, bonds or CDs. By establishing a gift annuity with these funds, you could be generating greater income, guaranteed at this rate, for the rest of your life.
  • Tax-Exempt Income
    A portion of your annuity is considered a return of principal, so the payment is partially income tax-free. The remainder is taxed at either ordinary income or capital gains tax rates. Please consult with your tax advisor for further information.
  • Charitable Tax Deduction
    Because the charitable gift annuity includes a gift to charity, you are eligible to receive a charitable income tax deduction. Your deduction is based on the expected remainder amount, which is calculated to reflect your age and the income you will receive during your lifetime
  • Who Sets The Annuity Rates?
    Annuity rates are recommended by the American Council on Gift Annuities. This national advisory group sets suggested maximum rates according to the age and number of annuitants. The older the donor, the higher the rate, as illustrated in the chart below.

Annuity Rates (as of July 1, 2008)

For One Life (yourself)
Age 60 65 70 75 80 85 90+
Rate 5.5% 5.7% 6.1% 6.7% 7.6% 8.9% 10.5%
For Two Lives (yourself and another)
Age 60 65 70 75 80 85 90+
Rate 5.3% 5.5% 5.8% 6.2% 6.9% 7.9% 9.4%

Who Gets The Gift?

Upon your passing, you may elect to have 100% of the remainder value of the annuity placed in an endowment at VCCF to benefit a designated nonprofit organization, or to further VCCF’s mission. The endowment can be in your name, in honor or in memory of someone, or to highlight the charity’s cause.

Alternatively, you may choose to have 90% of the gift annuity’s remainder value paid directly to the non-profit organization. The remaining 10% will be added to VCCF’s Cornerstone Funds to help expand VCCF’s capacity to serve donors more effectively, and to sustain this program for ones local non profits.

This program was created to encourage gifts to Ventura County non-profits, and secure the important work of these non-profits through the generous support of Ventura County residents. However, any eligible non-profit may receive the remainder value of your annuity.
**Please note that there is a $250 administrative fee charged for each charitable gift annuity, as well as a $60 fee charged by the California State Department of Insurance to file the annuity agreement.

For more information on the VCCF Charitable Gift Annuity and how you and your charity can benefit, please call Ilana R. Ormond at 805-988-0196 x122.

A Gift Annuity Example:

A recent donor, age 75, wants to support the needs of the hearing impaired in Ventura County. She has chosen to donate a $50,000 cash gift to VCCF to create a charitable gift annuity. Based on her age, her payout rate is 6.7%, which provides a yearly income payment of $3,350 ($2,224 of which is tax-free) for the rest of her life. She also receives a charitable income tax deduction, reducing her taxes in the year her gift is made. The remainder of her gift annuity will be placed in a permanent endowment at VCCF at her death, ensuring that funds will always be available to support the hearing impaired. Our donor is thrilled with the idea that this gift provides her such wonderful benefits while providing support for those in need for generations to come. VCCF is honored to have helped her create a legacy for the community.