Planned Giving Home

Frequently Asked Questions (FAQs) 

What is a charitable gift annuity?

A charitable gift annuity is an agreement between yourself and an organization like Catholic Extension, whereby you irrevocably transfer assets to the organization and in return receive fixed payments for the rest of your life.

Are there any tax benefits?

Yes, a portion of your charitable gift annuity can be claimed as an income tax charitable contribution deduction in the year you make your gift.  A portion of the annuity payment is income and a portion is considered a tax-free return for a period of years.  Any prospective donor should seek the advice
of a qualified estate and/or tax professional to determine the consequences of his or her gift.

What determines the payment amount, and does my age matter?

The amount of money you place in your charitable gift annuity and your age at the time the annuity is established will determine your payments.  The older you are when your annuity payments begin, the higher your payment rate.

Does that mean my payments will change as I get older?

No, your payment amount is set permanently when you establish your annuity and it will never change...even if interest rates or stock market performance fluctuate.

How often will I receive my payments?

You can receive your payments annually, semi-annually, quarterly, or even monthly.

Is there a minimum amount and age to establish a Catholic Extension Charitable Gift Annuity?

You can establish an annuity as early as age 55 for as little as $5,000.

Can I have more than one charitable gift annuity?  And can I benefit another person through an annuity?

Yes to both questions.  Some people establish a new charitable gift annuity each year and enjoy a higher rate because they are older.  And with any annuity, you can designate a loved one to receive the payments with you, instead of you, or only following your death.

Can I use securities rather than cash to establish a charitable gift annuity?

Yes. And often the tax benefits can be greater if the securities have increased in value, because you may avoid the tax on a portion of the capital gain.

How can I find out what my annuity payments will be?

It's easy.  For a free, no obligation proposal contact our Director of Annuities, Michael Prym at 1-800-842-7804, or Catholic Extension, 150 S. Wacker Drive, 20th Floor, Chicago, IL 60606.  You can also go online at www.catholicextension.org and use the calculator in the Annuity Tool Kit.

Can I wait before receiving my payments?

Yes, payments may begin any time. If you choose to defer your payments to a later date, they will generally be higher.

How safe is a charitable gift annuity?

The annuity payments are backed by all of Catholic Extension's assets.  Catholic Extension maintains a segregated annuity reserve fund in excess of our future annuity payments.  Catholic Extension's Annuity Program was established in 1908, and we've never missed a payment.

Are Catholic organizations that issue gift annuities exempt from state regulations?

Absolutely not.  All organizations, Catholic or non-Catholic, that issue charitable gift annuities must comply with the particular requirements of each state.  Catholic Extension complies with all current state regulations.   

Who will benefit from my Catholic Extension Charitable Gift Annuity?

You will benefit from your annuity's attractive, fixed rate of return for the rest of your life.  And your annuity will provide crucial support to the missions in poor and isolated areas of our country.

How can I set up a Catholic Extension Charitable Gift Annuity?

It's simple and convenient.  Just fill out an application or print one from the Annuity Tool Kit at www.catholicextension.org and return it with your check.  You can also call our Director of Annuities, Michael Prym, at 1-800-842-7804 to request an application.  He will be happy to answer any additional questions you may have.