Charitable Gift Annuities with Link Charity have the unique ability to provide individuals or couples with a higher than average investment income stream while providing a large gift to your favourite charity or charities.
- Guaranteed Income – Once the rate is set, it is set for life. The payments cannot be outlived. There is no risk or worry. Click here for our current Charitable Gift Annuity rate chart
- The Annuity Requires no Management – You do not have to watch investments, interest rates, maturity dates and so forth. You do not have to watch the stock market, the economy, the Income Tax Act, etc. Your payments are sent to you automatically and regularly.
- All or a Large Part of your Gift Annuity is Income Tax Exempt – The tax savings is very significant especially for middle and higher income people.
- There is an Immediate One Time Charitable Receipt Available of at Least 20% of the Capital Amount – When high rates are unnecessary, and you choose a lower rate, your receipt amount goes up sharply. We provide you with no obligation quotations.
- At the end of your life, when you no Longer Require Payments, the Remainder of the Gift Annuity Capital Becomes an Immediate Direct gift for Your Favourite Charities – This avoids probate fees, and other fees associated at estate time.
Link Charity, through wise and careful investing, have realized on average 85% of the original annuity amount will be retained and go to the charities of your choice when your annuity matures. This is generally two to three times higher than the national average of the remainder amounts of re-insured annuity programs.
Types of Charitable Gift Annuities
Single Life Gift Annuities pays income for the duration of the life a specific person.
Joint Gift Annuities are for two named persons and continue payments at the same level, to the surviving person for life, after the death of the other.
Deferred Gift Annuities can be either single or joint. You can set up an annuity now with all of its benefits but elect to receive income at a later date, sometimes years down the road.
Note: Annuities are not suitable for people under 60 unless it is a deferred annuity. The typical annuity age is 70.
Here’s How It Works
When you donate a capital sum into a Gift Annuity with Link Charity you trigger three events simultaneously:
- The gift is invested in our investment pool (generating an average return of around 8%)*
- You begin to receive a guaranteed lifetime annual income of between 5% – 10% of the initial gift, based on age. Much or all of the annuity payment you receive will be tax free.
- You receive a charitable tax receipt immediately of between 20 – 25% of your initial gift.
Your capital remains invested and at death, the remaining capital is distributed to the charities chosen by the annuitant. Link Charity has had great success with this program and has averaged 85% return of capital to charitable beneficiaries when the agreements mature.
You can even purchase a deferred annuity. So, consider your GIC’s with their taxable annual income of 2.5% and ask yourself, what if, I could triple my annual income, and give to my favourite ministries at the same time.
As a charitable organization, Link Charity, can streamline your annuity purchases. We do this by offering one larger annuity to you the donor and then dispersing your gifts to as many charities as you wish. This replaces smaller individual annuities to each individual charity, which saves administration costs, time and effort.
Fees and Disclosures
- Out of the overall investment income, Link Charity charges ½% per year for administration.
- Each annuity agreement is carefully tracked by Link Charity in a separate bookkeeping account for the rest of your life. It is possible that a person could outlive their life expectancy significantly. To make sure everyone, no matter how old, will always be paid, a special reserve has been established by the Board of Directors to address those situations.
- If one charity has made Gift Annuities known to you and worked with you on your plans, Link Charity has established an annuity expense reimbursement and will reimburse this charity ½% per year out of the investment income for a maximum of 5 years.
- Link Charity is a member in good standing of the CCAA (Canadian Charitable Annuity Association), the organization in Canada which sets standards for gift annuity agreements.
- Link Charity and its sponsoring charities adhere to the standards and ethics required of members. The Association also carefully sets recommended annuity rates based on a professional actuarial firm’s calculations and assumptions.
- In compliance with the CCAA standards, you are encouraged to seek independent advice. Also, you may change your mind within ten days of signing the agreement and your funds will be returned without penalty or charge.
- Link Charity files an annual report with CCAA (no confidential information and no names are shared). Every three years Link Charity’s agreements and investment portfolio will be reviewed for their adequacy by a professional actuarial firm.
The Link Charity minimum annuity purchase is $10,000.
Please visit our forms section for the Charitable Gift Annuity form and letter of disbursements.
* Past results are no guarantee of any future results