THE NATIONAL GIFT ANNUITY PROGRAM
 What Is It?
The BSA Gift Annuity Program is a program that allows you to make a gift to
Scouting and receive both a guaranteed lifetime income and a charitable income
tax deduction. The income is paid each quarter for one or two lives, as you
choose. You can even decide whether you want the payments to begin immediately,
or defer them until later.
What Kind of a Gift Must I Make?
Though the gift can be as large as you want, it must be a minimum of $2,500 to
receive a gift annuity. However, your gift can be made with cash, stocks, bonds,
or shares in a mutual fund.
How Much Income Would I Receive Each Year?
It depends on age. To receive a current gift annuity, you must be at least 50
years of age at the time of your gift. But the older you are, the higher the
annuity rate. Once your annuity is set, the payments will not change for the
life of the annuity. We normally use the rates of return recommended by the
American Council on Gift Annuities. If you choose to defer the start of your
payments - for example, to coincide with your retirement - your annual annuity
rate will be higher than for annuities that begin paying you now.
Can I have the Annuity Payments Go to Others Than Me?
Certainly. You can create a gift annuity for children, grandparents, parents,
retiring employees, or anyone you choose.* We now offer a limited-term college
annuity option. It might help provide some extra income for your college-bound
child or grandchild, and beneficiaries need not be 50 years of age.
How Would the Income Be Taxed?
If you use cash to make your gift, a large portion of each payment will be
taxable income. If you make your gift with stock or other appreciated property,
each annuity payment will be a mix of tax-free income, ordinary income, and
capital gain. When you create a gift annuity (or if you will request
personalized information), you receive a summary of how your annuity payments
will be taxed.
Are There Other Tax Benefits?
When you create your gift annuity, you receive an immediate income tax
charitable deduction. It is based on the fair market value of your gift. It
varies with the annuity return and the age of the beneficiaries (as a rule,
older beneficiaries receive larger charitable tax deductions). The gift may also
save probate costs and estate taxes (since the property is no longer in your
estate). If you make your gift with appreciated property, you also spread out
any capital gains over the life of the annuity, rather than pay it all at once.
How Will My Local Council Benefit From This Gift?
Though this program is offered through the BSA National Council, your gift can
be used to benefit the local council of your choice. When your gift annuity
payments end, the remaining value of your gift is distributed to your selected
council to benefit its Scouting programs. At that time, a small percentage of
your gift is used to cover part of the administrative costs we have incurred for
your gift annuity.
Who Administers This Program?
State Street Global Advisors in Boston, Massachusetts, administers all gifts
made to this program. It is one of the industry leaders in gift annuity
management and is responsible for investing your gift and sending out all
annuity checks and tax statements. However, the general assets of the Boy Scouts
of America guarantee your annuity for life.
How Do I Get More Information About This Program?
Contact your local council, or call the BSA national office at 800-BSA-INFO. You
will receive more information and a simple gift annuity agreement to review with
your own attorney or tax adviser. If you provide us with your age and the type
and size of the gift you are considering, you will also receive a personal
summary of the income and your estimated tax benefits for the gift you are
considering. This is free of charge, confidential, and with no obligation.
The BSA Gift Annuity Program is an exciting, effective, and innovative way to
provide for Scouting's financial future and benefit you and your family as well.
Find out more today!
For more information, contact:
Robert Sharetts at 610-926-3406
Hawk Mountain Council, BSA
5027 Pottsville Pike
Reading, PA 19605
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