EFSC Foundation Gift Planning Guide | Page 9

CHARITABLE GIFT ANNUITY Benefits I  n exchange for your gift EFSC promises to make lifetime annuity payments to one or two annuitants. The contractual obligation is backed by the EFSC Foundation, Inc., making this a very secure source of future income. After the death of the last annuitant, the balance of the remaining gift will be used by EFSC for the purpose you’ve designated. Did You Know?  Donors receive an income tax deduction based on the fair market value of the a ssets contributed less the present value of the future annuity payments. Payments to annuitants are generally partly taxable as ordinary income and capital gain (depending on the gift asset), and a portion is usually treated as tax-free return of principal. How it works Gift of cash or securities 1 2 Annuity payments and tax deduction 9 3 Remainder to EFSC