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The Pohai Nani Gift Annuity

Individuals often seek ways to maximize returns on fixed income investments at low risk. Purchasing bonds, investing in bank certificates of deposit or in money market accounts, keeping cash in savings accounts, purchasing commercial annuities – these are ways that many individuals attempt to minimize risk while achieving conservative returns. There is, perhaps, a better way. In addition to the traditional ways of low risk investing, consider a Charitable Gift Annuity.

Rekindling the Promise of Tomorrow

Just as the ancient Hawaiian practice of ahupua‘a provided for the community in perpetuity through careful management of it resources, so will your charitable gift to the Pohai Nani “mind body spirit” campaign provide for the current and future well being of our adult population. Thanks to your understanding and generosity, Pohai Nani and its Fitness Center will stand out as a leader in championing the rights of mature adults to live out their lives to the fullest.

Contact Information

For more information, including a no-obligation calculation of your POHAI NANI Charitable Gift Annuity, please contact Luann Foos, POHAI NANI’s Executive Director, 808-247-6211.

Q: What is a gift annuity?

A: It’s a contract between you and POHAI NANI which provides for a fixed rate lifetime annuity for you (and a survivor, if you wish). The gift annuity agreement is governed by Hawaii law in order to assure that the payments to annuitants are protected. The POHAI NANI Gift Annuity program also complies with the strict laws of certain states, including New York, New Jersey and California, which require that organizations like POHAI NANI that issue gift annuities maintain a segregated annuity reserve fund and invest it in a specific way to also protect annuitants. POHAI NANI is responsible to you for the payment of each annuity.

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Q: Why should I consider a POHAI NANI Gift Annuity?

A: It is important to make financial plans for retirement in a variety of ways. And if you’re already at retirement age, you will certainly want to secure high returns at low risk. A Gift Annuity provides one of many alternatives to accomplish these goals. And a Gift Annuity enables POHAI NANI to carry on its mission and programs when your annuity ends. With the tax deduction that you are entitled to claim when you establish the Gift Annuity, the high fixed rate (based upon your age) and the portion of tax-free income that is paid to you in each annuity payment, a Gift Annuity may prove to be a wise philanthropic and financial investment.

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Q: Can I contract with POHAI NANI to pay me an annuity without creating a Charitable Remainder Trust?

A: Yes, you can do this by entering into a Gift Annuity Agreement for the payment of a lifetime annuity to you (and another, if you choose) assuming that you are at least age 55. If you are under age 65, you may elect to defer the payment of your annuity until age 65 or later and obtain a higher lifetime fixed annuity rate. The rate for a current or deferred Gift Annuity is fixed for lifetime.

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Q: How do I contract with POHAI NANI to have annuity payments made to me in the future, especially if I am under age 65?

A: By entering into an agreement for a Deferred Gift Annuity and specifying the date in the future when your annuity payments will commence. The deferral period allows for a higher annuity rate than if you had purchased an immediate Charitable Gift Annuity. And this may serve as a supplement to other retirement plans you are also funding while not requiring you to include employees if you own your own business.

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Q: How is the amount of the annuity determined?

A: There are tables that are used to determine the amount of the annuity depending on the age of the applicant. The tables also are used to calculate the amount of the charitable deduction and the portion of the annuity payments that you will be receiving that are either tax-free or are taxed as long-term capital gains.

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Q: Is there any advantage to a Charitable Gift Annuity over a Charitable Remainder Trust?

A: In addition to ease of application (there is no trust agreement to be prepared and executed), Charitable Gift Annuity rates may often be higher than rates fixed in Charitable Remainder Trusts.

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Q: Can I purchase a Deferred Gift Annuity to help with the payment of future educational costs for a child or grandchild?

A: Yes. This is called a College Gift Annuity and can provide supplemental funds for future college education at fixed and determinable amounts.

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Q: Should I consider using Deferred Gift Annuities for my children to help them with their retirement?

A: Many individuals who want to make provisions for their children prefer to establish Deferred Gift Annuities to provide assured income for their lives instead of giving them lump sum legacies in order to be certain that they will always be provided for.

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Q: What are the tax implications of my Gift Annuity?

A: In the case of a Gift Annuity for a married couple, there will be no estate or gift taxes due. In addition, there will be a current income tax charitable deduction for a calculated portion of the total amount used to acquire the annuity. The following are sample tables of rates for a one-life and joint and survivor current Gift Annuity:


ONE - LIFE RATES

TWO- LIFE RATES
(Rates may be subject to change.)

AGE RATE AGE RATE

65

6.7%

65/70

6.4%

70

7.2%

70/75

6.8%

75

7.9%

75/80

7.3%

80

8.9%

80/85

8.1%

85

10.4%

85/90

9.2%

90+

12.0%

90/90

10.2%

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The information on this page is not intended to represent legal or tax advice or to substitute for such advice. Individuals are urged to consult with their professional advisors when considering charitable planned giving transactions.