Pacific Northwest Ballet

Gift Annuities

With a gift annuity, you simultaneously make a charitable gift of cash, securities or other assets to Pacific Northwest Ballet and provide guaranteed payments for life to one or two persons. The size of the payments depends on the size of the contribution and the age of the person(s) receiving the annuity. If you are married, you may choose a joint-and-survivor annuity that continues as long as either spouse lives. It is also possible to provide a lifetime annuity for someone other than yourself and your spouse--a parent or sibling, for example. Payments can begin immediately or be deferred to a later date.

The minimum amount to establish a gift annuity is $10,000, and the person receiving the annuity must be at least 60 years old when the payments begin. At the last beneficiary's death, the assets become available to Pacific Northwest Ballet, to be used according to your recommendations. Under this arrangement, there are some benefits to consider:

  • Provides you and/or another beneficiary a specified fixed amount annually for life
  • Provides an immediate income tax deduction for a portion of the value of the assets transferred
  • If long-term appreciated property is contributed, tax on capital gain is reduced
  • A portion of the payments made to you and/or your beneficiary will be taxed favorably for many years
  • Frequently provides greater cash flow than investments such as certificates of deposit
  • Can provide supplemental income for retirement
  • May provide estate tax savings
We would be pleased to prepare a free illustration showing how a charitable gift annuity would work in your situation. From information you provide, this illustration will indicate the guaranteed annual payments, the charitable tax deduction for you, and other information to help you in your decision. Please contact Lilah Ostmann, Major Gifts Officer, at 206.441.3594 or LOstmann@pnb.org for more information.

Planned Giving at Work
Ms. A, age 76, establishes a Charitable Gift Annuity at Pacific Northwest Ballet with $10,000 cash and receives lifetime payments of $690 annually, of which $462 is tax-free for the first 11 years. She also receives an income tax deduction of $4,542. The portion of her contribution remaining at the end of her lifetime will be added to PNB's Endowment fund, as she wants her gift to give in perpetuity.

Mr. and Mrs. B, ages 72 and 71, contribute stock valued at $40,000 for which they paid $10,000 some years ago. The stock's current dividend is 2%, or $800 per year. The annual payments from the annuity will be $2,280, almost three times what they are now receiving in dividends, and each payment will be taxed as follows for the duration of their life expectancy: $876 ordinary income, $1,053 capital gain, and $351 tax-free. Another benefit is an income tax deduction of $12,906 they can claim in the year that they make their gift.

(Example uses the August 2008 discount rate of 4.2%)

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