Woman makes 'win-win' move via charitable gift annuity

As she approaches retirement, Grace Allidi, a member of St. Mary's parish in Oneonta, wanted income to support herself and a way to help others.

"It was suggested that I might want to look into investing in a charitable gift annuity," she said, so she contacted James Kopp, executive director of development for the Albany Diocese.

They discussed a gift annuity, through which she gains income for life while contributing to programs she supports.

How it works

"When you make this type of a gift -- cash, securities or other property -- you have it transferred to the Diocese of Albany," Ms. Allidi explained. By investing the gift, "the Diocese begins to pay you fixed payments for life."

She said that the benefits of such an arrangement include an immediate income-tax deduction for a portion of the gift. In addition, the donor can choose when he or she wants the payments to begin.

"This is really a great vehicle for 'baby boomers,' many of whom are at retirement age," she added.

Choosing charities

Ms. Allidi selected the diocesan programs where her gift would be used.

"I am particularly fond of Catholic Charities and wanted some of my gift to be used by them," she noted. "I'm also fond of the RCIA program at my parish. I am an adult convert to Roman Catholicism, so I have a strong commitment to adult faith formation on the parish level."

She was also in the diocesan Formation for Ministry Program (FMP) for two years, so she selected that program as a third recipient of her annuity gift.

"FMP provides a wonderful source of information about our Catholic faith," she explained. "It gave me a great foundation in my faith, particularly in the Old Testament and Church history. It was a wonderful opportunity to explore and share the Catholic faith while growing in my knowledge of it. I wanted to give something back to that program that taught me so much."

'Win-win'

Ms. Allidi explained that what she did, in effect, was to take a portion of her retirement funds and transfer them to the Diocese with the stipulation that, upon her death, the money goes to the programs of her choice.

In the meantime, she receives a monthly check from investment income on the amount she donated.

"The donor also gets to take a charitable deduction for a portion of that gift," she said. "I concentrated on selecting the programs that I wanted to favor but had not given as much thought to the charitable deduction and monthly income benefit to me. It's a win-win situation for everyone."

Benefits

Ms. Allidi called the program "a wonderful opportunity to give to a charity and, at the same time, receive some benefits from that giving. If someone is wondering what to do with a 401(K) or IRA account, this program should be considered. Not only do you have a continued income, but you will have a tax-deductible charitable contribution.

"What I like the most about this annuity is that I am investing in something that is faith-based with a fair return. Rather than putting my money into 'XYZ Corporation' and not knowing if they support a cause I am opposed to, I am assured that the Foundation is investing in my faith-based interests. This is very important to me.

"I am so glad that the Albany Diocese has made the gift annuity option available. It helps both the giver and the receiver. Your giving can live on after you. It's good to put your money where your values are."

(For more information on deferred gift annuities or the Foundation of the Diocese of Albany, call 518-453-6680.)

(7/26/07)