The BSA Gift Annuity Program is an exciting, effective, and innovative way to provide for Scouting’s financial future and benefit you and your family as well.
What Is It?
The BSA Gift Annuity Program allows you to make a gift to Scouting and receive both a guaranteed lifetime income and a charitable income tax deduction. The income is paid each quarter for one or two lives, as you choose. You can decide whether you want the payments to begin immediately, or defer them until later.
What Kind of a Gift Must I Make?
Though the gift can be as large as you want, it must be a minimum of $2,500 to receive a gift annuity. Your gift can be made with cash, stocks, bonds, or mutual fund shares.
How Much Income Would I Receive Each Year?
It depends on age. To receive a current gift annuity, you must be at least 50 years of age at the time of your gift. But the older you are, the higher the annuity rate. Once your annuity is set, the payments will not change for the life of the annuity. We normally use the rates of return recommended by the American Council on Gift Annuities. If you choose to defer the start of your payments—for example, to coincide with your retirement—your annual annuity rate will be higher than for annuities that begin paying you now.
Can I Have the Annuity Payments Go to Others Than Me?
Certainly. Most people choose a spouse, but you can create a gift annuity for children, parents, retiring employees, or anyone else you choose. However, you should check with your tax adviser about possible gift tax issues.
How Would the Income Be Taxed?
If you use cash to make your gift, a large portion of each payment is usually tax-free; the rest of the payment will be taxable income. If you make your gift with stock or other appreciated property, each annuity payment will be a mix of tax-free income, ordinary income, and capital gain. When you create a gift annuity (or when you request personalized information), you receive a summary of how your annuity payments will be taxed.
Are There Other Tax Benefits?
When you create your gift annuity, you are entitled to an immediate income tax charitable deduction. It is based on the fair market value of your gift. It varies with the annuity return and the age of the beneficiaries (as a rule, older beneficiaries receive larger charitable tax deductions). The gift may also save probate costs and estate taxes (since the property is no longer in your estate). If you make your gift with appreciated property, you also spread out any capital gains over the life of the annuity, rather than pay it all at once.
How Will My Local Council Benefit From This Gift?
Though this program is offered through the BSA National Council, your gift can be used to benefit the local council of your choice. When your gift annuity payments end, the remaining value of your gift is distributed to the local council or councils you select to benefit their Scouting programs. At that time, a small percentage of your gift is used to cover part of the administrative costs we have incurred for your gift annuity.
Who Administers This Program?
State Street Global Advisors in Boston,Massachusetts, administers all gifts made to this program. It is one of the industry leaders in gift annuity management and is responsible for investing your gift and sending out all annuity checks and tax statements. However, the general assets of the Boy Scouts of America guarantee your annuity for life.
How Do I Get More Information About This Program?
Contact your local council, or call the BSA national office at 800-BSA-INFO. You will receive more information and a simple gift annuity agreement to review with your own attorney or tax adviser. If you provide us with your age and the type and size of the gift you are considering, you will also receive a personal summary of the income and your estimated tax benefits for the gift you are considering. This is free of charge, confidential, and with no obligation. You may also get some of this information at www.bsagiftplan.org using our planned gift calculator.