Gift Annuities

Are you tired of receiving on 2% or less on your invested funds?

You can get 6% to 12% depending on your age by investing a Charitable Gift Annuity with Butterfield Youth Services. That's right---you can receive a guaranteed income for the rest of your life greater than you are making with investments in a bank or other financial institution. You also get a big tax deduction in the first year and most of your annual income is tax-free.

It's simple---
A. Make an annuity gift of $5000 or more to BYS
B. Complete a simple annuity gift form.
C. Receive your quarterly earnings by check or direct deposit.

A lifetime income for you and your spouse

The annuity can be taken out on two lives, so that either person receives the income for his or her lifetime. The interest rate is slightly lower when two persons receive payment for life since more than one person will benefit.

Want to know more?

We can send a personalized calculation showing the income and tax benefits of your annuity gift. We need to know the amount of the gift and your date of birth. Contact Matt at mattvanvactor@bys-kids.org to e-mail your information.

Best of all

The best part of a charitable gift annuity is the part you can't see or spend. It's the good feeling you get when you help the Butterfield children. Each gift annuity is placed in the Butterfield Youth Services Endowment and will eventually become a permanent gift to future children at Butterfield. A charitable gift annuity helps you now and the children later.

Here's an example compared to a bank investment

Based on a 76 year old individual with a $10,000 investment. (This is an example only, rates vary by age.)

Double duty annuity

It is also possible for two persons to enjoy payments from a charitable gift annuity. Example: Mr and Mrs Green wish to include charitable gifts as part of their financial plans. If they give $20,000 for a gift annuity agreement, under current rates the annual payments will be $1,540 (7.7% of $20,000) at their ages. Payments will continue for as long as either lives. Their charitable income tax deduction the year of the gift will be over $8,300. Their deduction will result in significant tax savings they can invest for additional income if desired. As in the case of an annuity for one person's life, a portion of each year's payment is tax free for a number of years.

Questions and answers about gift annuities

Q. If I fund a gift annuity, can I withdraw the funds later?
A. No. The agreement must be a permanent transfer in order to qualify for the attractive tax
benefits that result from making your gift in this way.

Q. How often will I receive my annuity payments?
A. Gift annuity payments are made at least annually. You may also choose to have a quarterly
payment.

Q. Can a gift annuity be good way to provide an income for a surviving spouse?
A. Yes. Many couples enter into gift annuities that will make payments for as long as either of
them lives.

Q. Can I give gift annuity payments to someone else?
A. Certainly. A gift annuity can be a wonderful gift for a relative or special friend.

Q. Is it true that the older the person receiving payments, the higher the payment rate?
A. Yes. For older persons it is possible to return more of the initial amount transferred and still
produce a significant charitable gift when payments cease. Older persons may also have a
greater need for income than younger persons.

Q. How much of my annual payment will be free from income tax?
A. The answer depends on the payment rate and age of the person receiving payments when the
annuity is created. The older the payment recipient, the greater the tax-free percentage of
each payment. We will be pleased to provide you with more information upon request.

Please contact Matt Van Vactor for assistance and information about planned giving.