CHARITABLE GIFT ANNUITIES

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Immediate Payment and Deferred Payment

A Charitable Gift Annuity is a simple contract providing for our payment to you (and an optional second beneficiary) of a fixed amount for life in return for your contribution. The gift annuity offers you the assurance of payments that will not fluctuate and that are secured by all the assets of Washington National Opera. After lifetime of the annuitant(s), the remainder of the gift supports Washington National Opera. The minimum gift to establish a charitable gift annuity is $10,000, and the minimum age is 60 years. A gift annuity is easy to arrange through the Planned Giving Office, and there is no cost to set one up.

A charitable gift annuity offers you three distinct tax benefits:

1	You will receive an income tax charitable deduction for your gift annuity, based on the full value of the assets you contribute minus the present value of the life-income interest you retain.
2	If you fund your charitable gift annuity with appreciated securities, no upfront capital gains tax is payable. Only a portion of your capital gain will be reportable, and the tax will be spread over your annuity payments.
3	Part of each annuity payment will be considered the tax-free return of your principal. This effectively increases the cash flow from your gift annuity, and is not available with other types of life-income gifts.

(The IRS provides that the capital gain and tax-free-payment benefits are in effect during your life expectancy - if you live beyond your life expectancy, the entire annuity payment will be taxed as ordinary income.)

Your gift annuity can start paying you once you make your contribution (an immediate-payment gift annuity), or payments can commence at a later date that you select (a deferred gift annuity). Deferral allows us to offer you a higher annuity rate and gives you a larger charitable deduction.

Many younger donors create a series of deferred gift annuities over multiple years, jointly timed to begin making payments when they retire. To fund their gifts, they use assets they've already designated for retirement savings. Their deferred gift annuities give them an income tax deduction when they most need it, and an additional source of cash during their retirement years.

Examples

*These examplea are based on a factor that changes monthly.
Contact our office for a personal illustration based on the latest rates.

Example*

Immediate-Payment Gift Annuity for 1 Beneficiary

Assumptions:

> Benefactor aged 75
> Contributes securities worth $20,000

Contribution

$20,000

Annuity Rate

7.1%

Annual Payment (Fixed)

$1,420

Charitable Deduction

$8,309

Example*

Immediate-Payment Gift Annuity for 2 Beneficiaries

Assumptions:

> Benefactors aged 72 and 70
> Contributes securities worth $20,000

Contribution

$20,000

Annuity Rate

Annual Payment (Fixed)

$1,200

Charitable Deduction

$5,515

Thoughtful gift planning ensures maximum benefits for you and for the Opera. For additional information on planning your gift or for an individualized illustration, provided confidentially, please contact:

Washington National Opera
Steve I. Schneider, Esq., Director of Planned Giving
2600 Virginia Avenue NW, Suite 301
Washington , DC 20037
202-295-2418 | Fax: 202-295-2479
E-mail: sschneider@dc-opera.org

(Back to All Gifts-at-a-Glance)

The type of gift you make determines your tax benefits, and tax laws frequently change. You should consult your own legal and tax advisors regarding planned gifts to Washington National Opera.