Tower Topics ~ Spring 2003

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Annuities: An invitation to give and receive

A struggling market and interest rates at record lows brings up crucial questions for investors over 60 years old:

• How can I lock in what gains I have realized in my securities?

• How can I get a reasonable return on my assets?

The answer may be found not at the local bank or brokers’ offices, but right here at Conception Abbey.

Our Charitable Gift Annuity Program invites giving and receiving. It is an excellent opportunity to support the work of Conception Abbey while enjoying a fixed income for life. Here are a few of the most frequently asked questions about the program.

What is a Conception Abbey Charitable Gift Annuity?

It allows you to transfer your assets (cash, securities, etc.) to Conception Abbey while enjoying guaranteed periodic payments for life.

The payment amount is determined by the age of the annuitant when the annuity is initially funded. Once determined, the payment amount remains fixed for the annuitant’s lifetime.

What is the minimum amount needed to fund a Conception Abbey Charitable Gift Annuity?

$5,000

Can an annuity have more than one annuitant?

Yes, it is possible to have up to two annuitants. In fact, joint annuities are quite common for people who want to ensure that one another will enjoy payments for life.

Why a Conception Abbey Charitable Gift Annuity?

Your contribution will help the monks of Conception Abbey and their apostolates. Some of the areas the contribution will go to include:

• Education of students studying to be priests at Conception Seminary College;

• Outreach ministries;

• Maintenance of the monastery buildings and grounds;

• The Abbey Center for Prayer and Ministry guesthouse and retreat center.

How does the program work?

Suppose Grace, a 75-year-old woman, wants to make a gift of $10,000 to Conception Abbey in exchange for payments of 7.3 percent for as long as she lives. (Note: Payment rates are determined by the age of the annuitant.)

Federal law allows Grace to deduct part of her annuity as a charitable gift in the year the gift is made. Based on her payment schedule, Grace will receive $730 each year for as long as she lives. When filing her income tax annually, she need only report part of her payments; the remaining part may not have to be reported as income. (Note: The length of time that payments are partially tax-free varies depending on your age when the charitable gift annuity is created.)

Upon Grace’s death, Conception Abbey’s obligation to make payments ends, and the remainder of the original gift amount continues to support the Abbey’s work.

How do you make a Conception Abbey Charitable Gift Annuity?

We would be happy to send you a charitable gift annuity proposal which would outline how you can support Conception Abbey’s work while providing income for yourself.

To receive your personalized proposal, send a request in the envelope inserted in this issue of Tower Topics. You can also call us at (660) 944-2821 or reach us by email: development@conception.edu.

We will send you information about your payments and tax-deductible amount. There is no obligation on your part.

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