WINNIE QUINN, CHARITABLE GIFTS MANAGER
With the continued ups and downs in the financial markets, more and more of our older donors are turning to Catholic Missions In Canada’s (CMIC) charitable gift annuity program to create a steady dependable stream of lifetime income.
They want to be assured that they will receive the same amount monthly, quarterly, etc., year in and year out for life. And it’s a great comfort knowing they won’t outlive their income.
Donors also like the other benefits. Things like attractive rates, annuity income that is 70 to 100 percent tax-free, and further tax relief through a charitable donation receipt upfront for 20 per cent or more of their annuity investment.
Examples: Mr. and Mrs. Smith are both 75 years of age. They gave $50,000 to CMIC to establish a charitable gift annuity. The income rate for a joint annuity was 5.39 per cent, which means they will receive $2,695.00 every year, or $224.58 every month the rest of their lives. Eighty nine per cent (89 %) of their annuity income is tax-free and their upfront charitable donation receipt was $13,274.53. Knowing that any principal remaining in their annuity at the end of both their lives would support our missionary work across Canada gave them comfort.
Mr. and Mrs. Smith’s marginal tax rate is 46 per cent. Had they invested their $50,000 in a commercial annuity or GIC, any income received would be fully taxable at that tax rate and there would be no charitable donation receipt.
Father O, at age 83, invested $10,000 with CMIC for a quarterly payment for life. His rate of income is 8.13 per cent which gives him an annual income of $813.00, or $203.25 quarterly.
His annuity income is 100 percent tax-free. He also received a charitable donation receipt for $3,605.00. Father’s marginal tax rate is 30 per cent, this receipt will reduce his taxes owing on his next income tax return by $1,081.50. He was very pleased and plans to invest again.
Easy to do: Obtaining a charitable gift annuity from CMIC is much easier than you might think. If you provide us with your date(s) of birth and the amount you wish quoted, we will give you a personalized illustration showing how it all works. We provide you with
information you can share with your family and adviser(s). Once you have decided, simply fill in our gift annuity application form and return it to us with your cheque.
Why not take a moment to fill out and return the form on page 7? Or for a faster response, call me at 1-866-937-2642 or 416-934-3424. Once we know your date of birth and the amount you wish us to quote on, we can prepare an easy-to-read illustration that will tell you: