Annuities and IRA Rollovers Are ‘Win-Win Donations’

During these challenging economic times, Charitable Gift Annuities and IRA Charitable Rollovers provide important benefits for donors and the organizations they care about. Many Federation donors view these investment vehicles as true "win-win" situations.

A Federation Charitable Gift Annuity is an opportunity for donors 55 and older to receive a 2009 tax deduction, turn an asset into income and benefit the Jewish community. Many donors use Charitable Gift Annuities to supplement their income during retirement.

"From an investment point of view, a charitable gift annuity to Federation is the soundest and wisest investment one can make at this time," said retired Judge Leon Katz. And from a philanthropic point of view, adds Katz, "it's a no-brainer — the annuity supports Federation's vital work, benefits the donor and it's guaranteed!"

Federation gift annuity rates are in line with those recommended by the American Council on Gift Annuities. Rates are determined by the donor's age when the annuity is established. Annuities are a contractual agreement, and according to Rachel Gross, director of planned giving and endowments, "Federation has been a stable and trusted institution for over 100 years and has never missed a payment."

Annuities can be opened with cash or appreciated securities and payments can be immediate or deferred during the lifetime of the donor and/or the donor's spouse. At the death of the annuitant(s), the gift is usually placed in Federation's Unrestricted Endowment Fund, which supports those in need year after year.

However, donors can choose to target the proceeds of their annuity to one of Federation's three philanthropic areas: Israel and Overseas, Social Responsibility and Jewish Life and Learning. The proceeds can also be directed to a Federation partner agency or local synagogue.

Judge Katz and his wife Sandra have decided to direct a 2009 Charitable Gift Annuity to Women of Vision: The Jewish Women's Foundation of Greater Philadelphia, because "we believe in the Foundation's mission of giving grants to programs that support Jewish women and girls who are fighting an uphill battle for a better life," said Katz.

According to Katz, another advantage of Federation's Charitable Gift Annuity is "that you'll get more sleep at night! Payments are fixed from the outset and they will neither increase nor decrease, regardless of changes in interest rates or the stock market."

IRA Charitable Rollover

For those donors age 701/2 or over, Federation offers another opportunity to receive a tax benefit and support Federation — through an IRA charitable rollover. The Federal law which allowed donors to make a charitable rollover of IRA distribution dollars was extended through the end of December 2009. Although donors do not receive a charitable deduction for such a gift, they receive a tax benefit, since the IRA distribution is not subject to income tax as it would be otherwise.

The Federation Endowments Corporation does not give tax advice. Donors should consult with their tax/financial advisors to determine if a Charitable Gift Annuity is right for them.

For more information or to set up an appointment, contact Rachel Gross at 215-832-0572 or [email protected]



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