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Do the ACGA rates change from time to time?
The American Council on Gift Annuities reviews its annuity rates periodically in light of changes in investment returns and mortality tables. The ACGA changes it rates every few years if appropriate. However, once you enter into an annuity arrangement with the Archdiocese of Detroit Endowment Foundation, your rate will not change.

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How will I be taxed if I give cash to the foundation for a gift annuity?
Your transfer to the foundation is divided into two parts: one part, your investment in the annuity arrangement; the second, a charitable gift to the foundation. As you receive annuity payments, your investment in the annuity is returned tax-free to you, calculated over your life expectancy. The balance of the annuity payment is taxed as ordinary income. These amounts are determined under actuarial tables developed by the Internal Revenue Service.

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Am I entitled to a charitable contribution deduction on my gift to the foundation for an annuity?
A portion of the value of your transfer is a charitable gift in the year of transfer. The contribution amount is calculated under IRS tables and depends on the age of the annuitant at the time of transfer. If your gift is cash, the charitable contribution amount is deductible up to 50 percent of your adjusted gross income for the year of gift. If your gift is appreciated stock, the amount is deductible up to 30 percent of your adjusted gross income. If your contribution amount exceeds these limits in the year of gift, the excess may be carried forward for five years, subject to the same income limitations.

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What is a deferred gift annuity?
A deferred gift annuity is a charitable gift annuity that provides for annuity payments to begin on a date more than one year after the gift. The longer the annuity payments are deferred, the greater the annuity payment and the greater the charitable contribution amount. The charitable contribution is deductible in the year of the gift even though the annuity payments do not begin until a later year.

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What is a flexible gift annuity?
A flexible gift annuity is a deferred gift annuity, but rather than providing for annuity payments starting on a particular date more than one year from the gift, the flexible gift annuity arrangement provides that annuity payments may begin on any one of a range of dates specified in the agreement with the foundation. The annuitant may elect to begin receiving payments on any one of the range of dates. The agreement specifies the annuity rate depending on the date the annuitant elects. The charitable contribution deduction, however, is calculated as if the annuitant elects the earliest date in the range. The contribution is deductible in the year of gift even though the annuity payments will not begin until a later year.

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Is there a minimum amount I must give to the foundation for an annuity arrangement?
The foundation requires a minimum gift of $5,000 for an annuity arrangement.

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Is there a maximum amount I may give to the foundation for an annuity arrangement?
There is no maximum amount limitation on your gift to the foundation for an annuity arrangement.

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Is there a minimum age required for the annuitant?
The foundation requires that the annuitant be at least 50 years old at the time the annuity payments begin.