| Charitable Gift Annuities |
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What is a Gift Annuity?A gift annuity is an agreement under which a donor transfers cash or other property to The United Methodist Stewardship Foundation (The Stewardship Foundation) in return for regular payments for life. These annuity payments may be made to any one or two beneficiaries, often the donor and spouse. At the death of the surviving annuitant, funds remaining in the annuity contract, less the 10% fee for The Stewardship Foundation, are paid to your designated charity subject to any additional conditions as set forth on the attached Disclosure Statement. A gift annuity serves two purposes - it benefits you with fixed annuity payments and enables you to help others. The annuity is not designed primarily as an investment, but rather as a charitable gift. Therefore, the annuity rates offered by The Stewardship Foundation are lower than those available through commercial annuities offered by insurance companies and other financial institutions. Funding the AnnuityCash, mutual funds, stocks, bonds, or other property valued at $5,000 or more may be used to fund the gift annuity. If you fund the annuity with long-term appreciated property, you can avoid capital gains tax on part of the appreciation, and the capital gains tax on the remaining part will be spread in small amounts over your life expectancy. Also, property which pays you little or no income may be used to fund a gift annuity, giving you a higher, constant payment amount. See attached Disclosure Statement regarding additional conditions pertaining to the funding and distribution of the gift annuity. Upon the funding of the gift annuity by the annuitant, The Stewardship Foundation will be paid a fee for the processing of the gift annuity from the funds paid by the annuitant; the amount of the fee shall be determined by The Stewardship Foundation’s Board of Directors Such fee will not reduce the principal amount of the gift annuity. Please see the disclosure included with this brochure for current policy fees. Annuity PaymentsThe rate of return on a gift annuity with The Stewardship Foundation depends on whether the annuity is for one or two lives and the age of the annuitants. You are not penalized because of age - the older you are, the higher your annuity payments. Payments will be made monthly quarterly, semi-annually or annually, as you prefer The dollar amount of annuity payments is set when you fund your gift annuity. The dollor amount of annuity payments is set when you fund your gift annuity. Regardless of any changes in the economy or fluctuations in interest rates, you will receive fixed payments for life. Annuity payments are a general obligation of The Stewardship Foundation and are backed by all of our assets. The Gift Annuity Fund is invested in stocks, bonds, money market funds and federal obligations. Safety and SecurityAssets used to fund a gift annuity with The Stewardship Foundation are deposited in our Gift Annuity Fund currently managed by a professional investment manager. Annuity payments are mailed directly to you or the beneficiaries you have named. Direct deposit is also available. None of the annuity assets are used for other purposes until the annuity’s payment obligations have been fulfilled. Funds remaining in the annuity are then paid by The Stewardship Foundation to the ministry you have designated. See attached Disclosure Statement regarding additional conditions pertaining to the funding and distribution of the gift annuity. This is our way of insuring maximum financial security for you. You have the benefits of professional investment management with none of the worries. The financial statements of The Stewardship Foundation are audited by independent accountants on an annual basis. The Stewardship Foundation was established August 5, 1993. Responsibility for governing the organization is vested in a Board of Directors comprised of sixteen persons, four of whom are appointed because of offices held in the Central Pennsylvania Conference of The United Methodist Church and twelve of whom are elected at-large during the Annual Meeting of The Stewardship Foundation. The Stewardship Foundation has no power or authority whatever to obligate the Central Pennsylvania Conference or The United Methodist Church on any contract, agreement, or for any financial commitments of any character or description. Common investment funds managed by The Stewardship Foundation are exempt from registration requirements of the federal securities laws, pursuant to the exemption for collective investment funds and similar funds maintained by charitable organizations under the Philanthropy Protection Act of 1995 (P.L. 104-62). This information is provided to you in accordance with the requirements of that Act. The Stewardship Foundation’s promise to pay an annuity is not insurance under the laws of the Commonwealth of Pennsylvania, is not subject to regulations by the Pennsylvania Insurance Department and is not protected by the Pennsylvania Life and Health Insurance Guaranty Association under Article XVII of the Act of May 17, 1921 (P.L. 682, No.284), known as the Insurance Company Law of 1921 or other protective device. A Deferred Payment Gift AnnuityA deferred payment gift annuity can be an excellent means to provide supplemental retirement income. You can fund the annuity during your working years and specify that payments are to begin when you retire. Through this arrangement, you may realize greater income tax advantages, both during your working years and when you are retired. Also, because of the delay in making payments to you, the annuity payments will be higher. Annuity Through Your WillYou may specify in your will that some of your estate assets fund a gift annuity for the benefit of someone very special to you. A gift annuity assures your beneficiary a fixed annuity payment for life, but spares that person the burden of managing a direct bequest. The annuity payments are based on the beneficiary’s age at the time of your death and continue for the rest of the annuitant’s life. Any funds remaining are then used to help others through your favorite ministry. Tax Advantages
In the year you fund a gift annuity, you may immediately take an itemized contribution deduction on your federal income tax return. The amount of your deduction will depend on the type of annuity and the age of each annuitant.
A large portion of each annuity payment is tax-free. The tax-Free amount is fixed at the time the annuity is established and is a return of principal.
There are capital gain tax advantages when you fund a gift annuity with appreciated assets, such as stocks or mutual funds.
If an estate would otherwise be subject to federal estate tax, substantial tax savings can be achieved through a gift annuity. The gift assets are wholly excluded from the estate unless you are survived by an annuitant other than your spouse. Your tax advisor can give you guidance for your particular situation Other AdvantagesProbbate, estate administration costs, and publicity are avoided upon the death of the donor or other annuitants. Gift annuities off flexibility. You may establish annuities that fit your financial means and personal responsibilities. Opportunities to Help OthersIt is easy to help others through a gift annuity with The Stewardship Foundation by naming your favorite ministry as the final beneficiary. Here are some possibilites:
The Children's Home provides hundreds of thousands of dollars for children annually. There never are enough funds to provide for some of these children at the very time their needs are the greatest.
More than 15,000 persons benefit each year through our year-round program of Christian education outdoors. Improved facilities, equipment and scholarships to assist low-income persons are ongoing necessities.
Ethnic minority congregations, struggling rural and inner city parishes, new congregations, mobile home ministries, Summer of Service programs and many others benefit through the missions outrach of our conference.
More than 600 retired pastors or spouses of deceased pastors who have served in the Susquehanna Conference receive pensions.
Needy college and seminary students who are preparing for full-time church-related vocations can receive grants and loans from our Student Aid Fund each year. More scholarship assistance will be required as costs continue to escalate.
This Christian inner-city community center in Harrisburg, provides educational, cultural, recreational, and leadership programs for children and adults. Program monis are always appreciated and put to good use.
Local churches, United Methodist organizations and other non-profit organizations may be supported through The Stewardship Foundation. You may also support the work of The Stewardship Foundation with gifts to the Stewardship Foundation Endowment Fund. This Fund supports our work with local United Methodist Churches and their members in promoting Christian Stewardship in the effective management of all gifts given to us by Jesus Christ. The United Methodist Stewardship Foundation is a member of the American Council on Gift Annuities For more specific information about the income and tax benefits you can receive through a Gift Annuity, contact: Rev. Phyllis M. Bowers, Executive Director
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