The Charitable Gift Annuity

Julie and Lonzo had often talked about the value of a college education and their plan to establish a scholarship fund that would allow low-income students to attend college. Upon Lonzo's death, Julie vowed to make sure their plans became a reality. She contacted Pacific and established the Lonzo and Julie Beck Endowed Scholarship in memory of her husband.

She also indicated she planned to add to the endowment through a future bequest in her will. During her discussions with Duane Isetti, Pacific's Director of Estate and Planned Giving, Duane suggested that Julie consider the benefits and advantages of a current gift versus her intended bequest. The vehicle Duane proposed to Julie was a charitable gift annuity. Duane outlined the numerous advantages a gift annuity has over a bequest. They include:

1. regular payments with a large portion tax free;
2. an income tax deduction, which can result in substantial tax savings;
3. fixed, regular payments for the rest of her life; and
4. personal satisfaction of making the gift now.

After reviewing all the benefits, Julie decided to make a current gift by using the charitable gift annuity.

To quote Julie, "Why wait until I die when I can benefit financially now and experience the joy of giving while I am alive?"