American Red Cross - Southeast Minnesota Chapter

Whether creating a new will or amending an existing one (through a document called a codicil), the Red Cross advises that you consult with your attorney first. To include the Goodhue County Chapter of the Red Cross in your will, or to include it in an amendment to your existing will, we suggest you use the following language according to the type of donation you prefer to give:

A Dollar Amount –
"I give, devise, and bequeath to the American Red Cross Goodhue County Chapter, located at 460 Guernsey Lane, Red Wing, MN 55066, the sum of $___."

A Percentage of Your Estate –
"I give, devise, and bequeath to the American Red Cross Goodhue County Chapter, located at 460 Guernsey Lane, Red Wing, MN 55066, (percentage)%________ of my estate."

A charitable gift annuity is easy to set up and doesn’t require a lot of money. The minimum contribution is $5,000. The only requirement is that you must be at least 65 years of age or be willing to defer payments until you turn 65.

The rate of payment you receive doesn’t fluctuate with the stock market, interest rates or inflation. It is firmly set at the time of your gift and never changes. A brief contract between you and the Red Cross spells out the annuity payments and their frequency (usually annually, semi-annually or quarterly).

Your age at the time of the gift determines the payment rate: the older you are, the higher the rate. The chart below shows some examples, based on the rates of return recommended by the American Council on Gift Annuities.

If you itemize deductions on your tax return, you get a tax break for a portion of your gift, based on the payment you receive and your age at the start. This is the government’s way of encouraging gifts to public charitable organizations. A portion of the payments will be tax-free and if you used securities to fund the annuity you receive a reduction in capital gains taxes.

If you wish, you can arrange a two-life annuity that makes payments to you and then to another person—your spouse, for instance—for life. The rate of return is slightly lower for a two-life annuity than for a single-life annuity, because the payment period likely will be longer for two lives.

Are you financially supporting an elderly parent, sibling or friend? If so, consider naming him or her as beneficiary of a Red Cross Charitable Gift Annuity. You will receive an immediate charitable tax deduction for your gift. Your loved one will receive a guaranteed lifetime income, based on age, a portion of which will be tax-free and you will no longer be providing support using your hard-earned after-tax dollars.

A charitable gift annuity provides the benefit of immediate payments, but if you defer the payments, the benefits multiply. With a deferred gift annuity, you make your contribution now and receive an immediate income tax charitable deduction, but you postpone the start of your life income until a specified future date. The rate of return depends on your birth date and the date when the payments will begin. Because payments are deferred, the rate is considerably higher than the rate for an immediate annuity.

By creating a charitable gift annuity, you’ll receive dependable and unchangeable payments you won’t outlive—and you’ll enjoy significant tax savings, too. At the same time, you’ll be supporting the Red Cross’ commitment to relieving the suffering caused by disasters and to saving lives. For a free benefits summary, at no obligation, call the chapter office at (651)388-9166.