A charitable gift annuity is a contract with the Community Foundation through which you provide a gift to the charity of your choice and, in exchange, the Community Foundation guarantees you income for life. 

The fixed income payments may be made to you, your spouse or up to two people you would like to support. Upon the death of the individual receiving the payments, the remaining money becomes a permanent fund at the Foundation to benefit a nonprofit or charitable purpose of your choice.

• Create guaranteed lifetime income for you or someone else
• Help you accomplish your charitable objectives and make a lasting impact on the community
• Allow you to receive a charitable income tax deduction for part of your gift
• Reduce your estate taxes

• The minimum amount to create a charitable gift annuity is $50,000, and there is no set-up fee.
• We assess an ongoing fee for fund administration, currently 2%.
• There can be up to two lifetime beneficiaries. Beneficiaries must be at least 65 years old.
• The donor and recipient must reside in Iowa.
• In exchange for a specific gift amount, the Community Foundation pays a fixed and guaranteed payment monthly, quarterly, semi-annually or annually for the remainder of the lives of the beneficiaries.
• The amount of the lifetime payment is based on annuity rates published by the American Council on Gift Annuities, a national standard followed by almost all nonprofits.
• Upon the deaths of the beneficiaries, the remaining principal is held in a fund at the Community Foundation to carry out your charitable intentions.
• The Community Foundation will retain 10% of the initial gift in the annuity pool for insurance for those that out-live their annuity.
• Your tax benefits depend upon factors that include your age, the number of annuitants, the relationship of the annuitant(s), and the type of property being transferred.
• This is a non-revocable contract with the Community Foundation.

While updating their estate plan in 2016, Bill and Shirley Homrighausen decided to include a legacy gift to their community through a charitable gift annuity. This will enable the Homrighausens to make a generous gift to their community while providing themselves with a new income source they can count on for the rest of their lives. Upon passing, the remaining balance of the annuity will fund the William and Shirley Homrighausen fund for the DeWitt area, which will broadly fund causes the two love.

“If you’re giving to someone to better their life and to learn a profession, it has to give you…” Bill pauses to hold his hand to his heart. “It’s like a father putting a child through college. It’s the best investment in the world. It’s perpetual and will live forever.”