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Investing in the Future
How to Convert $43, 292 into $100,000 Plus a Tax Break

Robert W. Sitton, 32°

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A Charitable Give Annuity can give you tax benefits now, plus the comfort of providing for your familyand the work of theScottish Rite Foundation.

Scott (70 years old) originally had $43,292 earmarked for his wife and family at his death. Instead, he got a Scottish Rite Charitable Gift Annuity (a “CGA”) and helped everyone.

A CGA is a contract in which the Scottish Rite Foundation, Southern Jurisdiction, in return for a transfer of cash or marketable securities, agrees to pay a fixed sum on money for the rest of the donor’s life. After the donor’s death, the remainder of the gift passes to the Scottish Rite charity of his or her choice. A joint gift can also be made. For example, a husband and wife can donate cash or marketable securities in exchange for a two-life gift annuity—they both get a payment for their lives and after one of them passes away, the survivor gets the same payment for the rest of his or her life. This is a wonderful way to ensure income to your spouse after your death.

In Scott’s example, based on his age of 70 years, he will receive a fixed rate of 6.5% for the rest of his life. That works out to $2,814 per year ($43,292 6.5%). The guaranteed income Scott receives is very tax-advantaged, plus he will receive a hefty tax deduction. Scott can keep the annual income of $2,814 or use it to pay the premiums on a $100,000 universal life insurance policy for his family. So, he can “convert” his $43,292 to $100,000 for his family, plus he gets a current tax deduction!

Scott receives tax benefits now, and he has the comfort of providing for his family and the work of the Scottish Rite Foundation.

Call today to find out how you can benefit from a Scottish Rite Foundation Charitable Gift Annuity. You can speak to Earl E. Ihle, Jr., 33°, Grand Cross, Director of Development, at 1-866-748-3227 (toll-free), or Barbara Golden, Director of Planned Giving, member, OES Chapter No. 66, at 1-866-448-3773 (toll-free).

Other example rates:

Age	Rate of Return*
50	5.3%
60	5.7%
70	6.5%
80	8.0%
90+	11.3%

*Examples and rates are believed to be accurate, but we cannot guarantee their accuracy. 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.

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

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Please Note: This information is distributed with the understanding that the authors are not engaged in rendering legal, accounting, or other professional service. If legal advice or other expertise is required, the services of a competent professional should be sought. From: A Declaration of Principles jointly adopted by a Committee of the American Bar Association and a Committee of Publishers.

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*For more about how you can help the Rite, please see the "Make a Gift Link" above.*

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The 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@scottishrite.org.

Earl E. Ihle, Jr., 33°, GC, 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@scottishrite.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@scottishrite.org.