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Annuity Types, Rates & Tax Benefits

A Gift in Exchange for a Lifetime of Benefits

A Divine Word Charitable Gift Annuity is a simple contract between you and SVD Funds, Inc. (Society of the Divine Word).

In exchange for your irrevocable gift of cash, securities, or other assets, SVD Funds, Inc. agrees to pay you, or another person whom you name, a fixed sum for life. The rate you receive on your contract is fixed and remains constant for life. The age of the person and the type of annuity determines the payment rate. Government regulations require that charitable gift annuities be irrevocable. You may choose to contribute more than one annuity over time. Because payment rates increase with age, each additional annuity generally features higher interest, and thus higher payments. Your gift annuity is an irrevocable gift. A percentage of your gift annuity can be deducted as a charitable contribution. A portion of the annual income received is also tax-free.

There are different types of annuities to consider

Single Life Annuity:

A Single Life Annuity is for one individual. The Society accepts the responsibility to pay the individual name on the contract a fixed income for life. The principal of the annuities is non-refundable.

Joint Annuity:

A Joint Annuity provides payments to two individuals for as long as either of them lives.

Survivor Annuity:

A Survivor Annuity covers the life of two individuals. Payment is made to the donor alone during his/her lifetime, and subsequently to a named survivor.

Deferred Annuity:

A Deferred Annuity begins payments at a later date to be determined by the donor. The interest is compounded accordingly. The minimum period of time is one year after the date of the contract.

Annuity Tax Benefits & Payment Options

Is my contribution to the Society of the Divine Word Gift Annuity tax-deductible?

A percentage of your gift annuity can be deducted as a charitable contribution. A portion of the annual income received is also tax-free. Exact figures for each annuity are based upon current Internal Revenue Service (IRS) regulations.

Am I liable for capital gain taxes on securities used to pay for a Divine Word Gift Annuity?

If the securities you use towards your gift annuity have a capital gain, as defined by the IRS, you are liable for capital gain taxes on that portion. To your benefit, the capital gain is spread over your life expectancy rather than one lump sum gain.

What are my options for receiving my annuity payments?

Payment options vary depending on your level of annuity investment:

  • Quarterly payments are available with a minimum $5,000 investment
  • Monthly payments are available with a minimum $10,000 investment
  • Annual and semi-annual payments are available for all annuities

What guarantee do I have that I will receive my payments?

The Society of the Divine Word started the first Catholic gift annuity program in America in 1904. We take our annuity obligations very seriously. We can proudly say that in more than 110 years, we have never missed a payment! The funds to meet our annuity obligations are invested primarily in fixed assets (bonds or other debt securities) and cash.

Single Life Annuity Rates

Age Rate   Age Rate   Age Rate   Age Rate   Age Rate   Age Rate
55 4.75   61 5.20   67 5.80   73 6.45   79 7.65   85 8.70
56 4.75   62 5.30   68 5.95   74 6.55   80 7.80   86 8.90
57 4.75   63 5.35   69 6.05   75 6.75   81 7.95   87 9.20
58 4.85   64 5.55   70 6.20   76 6.95   82 8.10   88 9.55
59 4.95   65 5.65   71 6.25   77 7.25   83 8.40   89 9.75
60 5.10   66 5.70   72 6.35   78 7.40   84 8.55   90+ 9.90

Annuity rates are subject to change without prior notice. IRS regulations require that the charitable contribution portion of a Gift Annuity be at least 10% of amount paid for the Gift Annuity. If the charitable contribution calculates less than 10% allowed, then it will be necessary to reduce the annuity rate illustrated in the above table.

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