A Gift For Any Season

Robert W. Sitton, 32°

Photo: ©Maxwell MacKenzie, Washington, D.C.

A Scottish Rite Charitable Gift Annuity will make a truly wonderful gift for the holiday or any season.

With today’s lower CD and other interest rates, the Scottish Rite Foundation offers an extremely interesting income and tax-planning tool. How much of a tax deduction did your CD provide last year? And how much of it was tax free?

With a minimum gift of $5,000, the Scottish Rite Foundation Charitable Gift Annuity Program will provide for the donor fixed payments for life that, in most cases, is partially tax free and that provides the donor with a tax deduction. A Charitable Gift Annuity is also a great vehicle for an appreciated asset such as stock. In most cases, a donor will reduce any capital gains tax and still receive a tax deduction.

The annuity amount is a fixed amount and will not change (see “The Scottish Rite Foundation Charitable Gift Annuity” fixed-rates chart next page), regardless of market conditions, once the gift is made. So what exactly is a Gift Annuity? A Gift Annuity, also known as a “Charitable Gift Annuity,” or CGA, is a CONTRACT (NOT a “trust”), under which the Scottish Rite Foundation, Southern Jurisdiction, in return for a transfer of cash or marketable securities, agrees to pay a fixed sum of money (payments) for a period measured only by one or two lives (not a term of years).

A person who receives payments is called an “annuitant.” The fixed payments (called the “annuity”) are set and unchanged for the term of the contract. The annuity payments are NOT called “income,” for a portion of the payments are considered to be a partial tax-free return of the donor’s gift, which are spread “ratably” (in equal payments) over the life expectancy of the annuitant(s).

The contributed property (the gift), given irrevocably, becomes a part of the charity’s assets, and the payments are a general obligation of the Scottish Rite Foundation. The annuity is backed by the Scottish Rite Foundation’s entire assets, not just by the property contributed. Unlike a trust, annuity payments continue for the life/lives of the annuitant(s) and not ONLY as long as assets remain in the Gift Annuity Fund. Remember also that a donor has the ability to name a local Scottish Rite Foundation as the remainder beneficiary of the Charitable Gift Annuity.

Yes, it’s our favorite time of year—the holidays—and many members have been calling to find out about donating to the Scottish Rite’s charities. Some donors want to help children learn to speak, read, and write by giving to the RiteCare Childhood Language Program; others want to sponsor scholarships for young people who might otherwise be unable to go to college or vocational school. Still others want to help people who are victims of natural disasters. Their gift to the Scottish Rite Foundation, Southern Jurisdiction, U.S.A., Inc., can be earmarked for any of those causes. Other donors want to support the House of the Temple as a museum and library for people to learn about the benefits and contributions of Freemasonry to our country and the world. These people want to help—to make a holiday gift that will be a lasting legacy—but they don’t know how. One very popular method of giving is through the Scottish Rite Foundation Charitable Gift Annuity Program.

To find out what your rate and possible tax deduction would be, please call Barbara Golden toll free at 1-866-448-3773 for a detailed analysis of a contribution to the Scottish Rite Foundation Charitable Gift Annuity Program.

The Scottish Rite Foundation
Charitable Gift Annuity Investment Rates

*These rates, current as of 7/1/04, are for a single life. Rates are set annually by the American Council on Gift Annuities and fixed for life at the time you contract for a Gift Annuity. Gift Annuities are not available in some states.

This chart is for illustrative purposes and is not intended as legal advice. Please consult your attorney or financial advisor. A Gift Annuity is an irrevocable gift, not an investment. It is not insured by the federal or any state government, but is backed by the assets of the Scottish Rite.

Bro. Robert W. Sitton, 32°, Valley of Baltimore, contributed to this month’s article on the Scottish Rite Foundation Charitable Gift Annuity Program. Bro. Robert is a Divisional Senior Vice President, Senior Portfolio Manager, with UBS Financial Services. UBS Financial Services assists in the management of the Scottish Rite Foundation Charitable Gift Annuity Program.

- Our Development Team -

Barbara G. Golden, Esq., is the team's Director of Planned Giving. Barbara is an attorney with experience in tax, corporate, and commercial real estate law. She managed a non-profit legal services organization for several years and has extensive experience in fund-raising, grant writing, and program operations. Contacts: Tel. 202-777-3163; Fax 202-884-0183; or call 1-866-GIVESRF (448-3773) Toll Free; bgolden@srmason-sj.org.

Earl E. Ihle, Jr., 33°, is the team's Director of Development. He has been a member of the Fraternity for 30 years and served in 1978 as Master of Lafayette Lodge, #111, Baltimore, Maryland. He is also a member of Boumi Shrine Temple in Baltimore, the York Rite, and a dual member of the Scottish Rite Valleys of Baltimore and Washington, D.C. Contacts: Tel. 202-777-3143; Fax 202-884-0183; or call 1-866-RITECARE (748-3227) Toll Free; eihle@srmason-sj.org. Dr.Thomas M. Boles, GC, is the team's Advisor on Philanthropies. A member of the Los Angeles, San Francisco, and Santa Ana Valleys, he has worked extensively in fund-raising for children's programs throughout our Fraternity. Contacts: Tel. 562-691-4227; Fax 562-691-5327; or call 1-800-SRMASON (776-2766) Toll Free; tboles@srmason-sj.org.