Charitable Gift Annunities
Your gift annuity is an arrangement where you make a contribution to the Atlantic School of Theology and receive, in turn, guaranteed payments for life. It’s a way of giving that allows you to make a substantial gift even though you may need ongoing income from your assets.
When you make your contribution to AST a portion is used to purchase an annuity from a major Canadian life insurance company. The difference between your contribution and the cost of the annuity is immediately available for use by AST to support theology education programs. You receive a one-time tax receipt for this amount.
Your guaranteed annual payments from the annuity, which will be significantly higher than from your GIC’s or savings bonds, are backed by the assets of the insurance company and are not subject to fluctuating interest rates or renewal schedules. All, or a substantial portion, of your payment is tax free.
Harold and Peggy, both aged 85, want to make a gift in support of AST. They make a $50,000 contribution and AST arranges a joint and last survivor life annuity for them providing payments of $4,250 (8.5%) per year. The cost of the annuity is $35,000, leaving $15,000 as an immediate gift for which they receive a charitable tax receipt. And in their case none of the annual annuity payment is taxable!
Harold and Peggy are delighted to make this gift knowing that it will AST now and in the future. They look forward to receiving their tax benefits too!
Please note: The above example is for illustration purposes only. Rates will vary. Please contact the Advancement Office for more details or for a confidential quote.