Act Now for Gift Annuities, IRA Rollovers before Changes Jan. 1

6 December 2011

The information below will give you some insight into the changes that happen for 2012 and how you can act now to take advantage of current rates and rules.

Gift Annuity Rates Dropping

Starting Jan. 1, the Foundations working with Lutheran Services Florida will be adopting new lower Gift Annuity rates issued by the American Council of Gift Annuities.

Now is the right time to establish a Gift Annuity to receive the current higher rates to benefit you and your gift to ministry. Gifts must be established on or before Dec. 31. Transfer of stock may take time; please begin this process now if you wish to use this asset.

More information about the Gift Annuity rate drop can be found at www.acga-web.org. Below is an excerpt from the website explaining the change in rates:

The American Council on Gift Annuities (ACGA) board of directors held its semi-annual meeting on Nov. 7, 2011. As part of a continual monitoring process, the board reviewed the current assumptions that underlie the rates schedules. Given the significant changes in the economic environment, the board approved a new schedule of suggested maximum Gift Annuity rates that will become effective Jan. 1, 2012. At ages older than 60, when the majority of Gift Annuities are issued, one-life rates will decline by 0.5% to 0.8%.

What is a Gift Annuity?

A Gift Annuity is a contract between The LCMS Foundation or The ELCA Foundation and the donor. The donor transfers property (cash or publicly traded securities) to The Foundation and The Foundation promises to pay the annuity for one life or two lives. A Gift Annuity may be established with as little as $5,000. Many people choose to use low yield stock because a Gift Annuity often pays more. The amount of the Gift Annuity payment is determined when the gift is established, based on the amount of the gift and the age of the annuitant(s).

After the death of the annuitant(s), the remainder of the gift is given to Lutheran Services Florida or another donor-designated Lutheran ministry.

Contact LSF Director of Development Steve Cecchetti today to establish your Gift Annuity at scecchetti@lsfnet.org or 407-878-8397.

You should always seek the advice of a professional legal, tax or financial advisor before making decisions on planned charitable gifts. LSF is a registered 501(c)3 nonprofit organization. Donations are tax deductible as allowed by law.

IRA Charitable Rollover for 2011 Running Out

On Dec. 17, 2010, the President signed into law The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. This bill restored the IRA Charitable Rollover for use through Dec. 31 of this year, but it is not anticipated to extend beyond that date.

The principal rules for direct transfers from an IRA to a qualified public charity are that the IRA owner must be age 70-1/2 or older and that the transfer is for no more than $100,000 each year. A 2011 transfer qualifies for the required minimum distribution for this year. The transfer must be to a public charity such as Lutheran Services Florida, either outright or for a specific purpose, but may not be to a donor advised fund or supporting organization. The transfer is made directly from a custodian or trustee to the charitable organization.

For more information you may contact LSF Director of Development Steve Cecchetti at scecchetti@lsfnet.org or 407-878-8397.

You should always seek the advice of a professional legal, tax or financial advisor before making decisions on planned charitable gifts. LSF is a registered 501(c)3 nonprofit organization. Donations are tax deductible as allowed by law.

About Lutheran Services Florida

Lutheran Services Florida is a statewide, nonprofit human services agency dedicated to helping all people in need regardless of religious affiliation, age or national origin. Headquartered in Tampa, the agency has more than 60 programs located throughout Florida. Since it was established in 1982, LSF has helped more than 850,000 children and families. LSF’s mission is to bring God’s healing, hope and help to people in need.

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