Gift annuities are very attractive to donors because the benefits are so appealing. In addition, gift annuities are easy to understand, so that development officers can quickly share this gift opportunity with potential donors, while advancing the charitable mission of the organization.

Gift annuity benefits include:

• Federal income tax deduction. If the deduction exceeds the donor's allowable limit for one year, the donor can spread it over up to five additional years.
• Fixed payments guaranteed for life. In most cases, part of each payment is tax-free, increasing its after-tax value.
• Possible reduced probate costs and estate taxes.
• Generous support of charity.

As in all fundraising, the personal relationship with the donor is crucial. Inevitably, closing a gift comes down to a one-on-one conversation with your donor, whether in person or on the phone. You will not close gifts on the technical merits of the gift annuity but rather on the donor's commitment to your charitable mission. If you can convince a donor of the merit of your cause, you already have the most important tool you need to close gift annuities.

Closing gifts can be done by staff or Board members, volunteers, consultants, or other service providers, but most charities rely on their development staff to close planned gifts. Thus, the more staff members you have who can speak confidently about gift annuities, the more gift annuities you will close.

Fortunately, it is not difficult to learn the basics of gift annuities. The basic concepts are simple, and when you work with PG Calc, you always have expert advice when you need it, with unlimited access to experienced gift planners on our Client Services staff. Our proposal software, Gift Annuity Manager, produces all the illustrations you need to guide your donors through every step of the process from cover letter through signed agreement. We'll talk you through your first gifts and check your illustrations before you show them to the donors. Our software even provides a safety net by issuing warning messages or preventing you from modeling a non-qualified gift.

With PG Calc as your partner in planned giving, you will be able to launch your gift annuity program with confidence and reap the benefits of early success.

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