Setting Your Assets Free To Do Good Work!

If you are fifty-nine and one-half or older and like most people our age, you have spent a lifetime working hard and saving money. You probably own assets that have appreciated a great deal over the years. As a result, you are probably facing a large capital gains tax, should you access this capital. The assets may be in a large Certificate of Deposit, an IRA, a tax-deferred annuity — or some other financial instrument. If these assets remain in your estate, your heirs may face estate tax consequences.

You Decide What to Do With Your Money

You may also have things you want to do with your money. For example, you may want to use this capital to create a fixed stream of income payable to yourself for the rest of your life. Or, you may want to direct a stream of income to your spouse, to one or more children or grandchildren, to a disabled family member, or to some other loved one. Also, you might welcome the opportunity to make a significant donation to a charity, school, religious organization, or cause-related group that is important to you.

Got Questions About 54Freedom Gift Annuities?
We've Got Answers — What You Need to Know (FAQ's)

What is a Charitable Gift Annuity?

A charitable gift annuity (CGA) allows you to make a gift to your favorite charity, and still receive an income for yourself or others. As part of the transaction, the charity, in return for a transfer of cash or other accumulated assets, agrees to pay a fixed sum of money over one or two lives. The payments from the charitable gift annuity are fixed and will not fluctuate.

What Makes 54Freedom's Approach to Charitable Gift Annuities Different?

54Freedom advantages are flexibility, security and convenience. When the donor makes a donation, 54Freedom administers the transaction and can direct the donation to multiple not-for-profits. This keeps the donor from being locked into a single Charity or Not-for-Profit. In addition, 54Freedom can offer a variety of annuity products, thus providing greater flexibility in how money will be paid out and to whom it will be paid. In terms of security, instead of receiving a stream of payments from a Charity, the 54Freedom solution provides payments backed by highly rated, state-regulated insurance carriers.

Donors also find great convenience in the 54Freedom package of services. The service includes a Certified Accountant's review of the donation deduction, and a Verification Receipt, a letter confirming that donation has been received and annuity is in place from a National Certified Public Accounting Firm. An annual Annuity Tracking and Support service provides updates as to annuity values and other pertinent information as the program matures annually.

Should I be interested? What types of people are going to be interested in 54Freedom Gift Annuities?

54Freedom Gift Annuity works well for people with loved ones who have disabilities and special needs trusts. It also works well for high net worth individuals seeking tax advantaged investments. Additionally, people with appreciated assets may be interested. Some examples of appreciated assets include CDs or other fixed income investments where the interest rate has declined. People who want to lock in growth of appreciated assets but who don't want to pay tax on the capital gain are likely to be interested. People with IRA's which have appreciated greatly should be interested too. Also, a 54Freedom Gift Annuity transaction can help people donate a large sum of money to benefit charities of all kinds.

What Are Some Of The Tax Benefits Of This Transaction?

Capital gains on the donated asset are reduced because a portion of the gain is offset by the deduction for a charitable donation. Any remaining capital gains are amortized over life of income stream. Additionally, the asset is removed from estate reducing the taxable estate to the donor's heirs.

What Determines The Amount of The 54Freedom Gift Annuity Payments?

Four key variables are used to calculate the amount of the annuity payment received by you or your loved ones: the amount of the contribution, the number of annuitants, their age, of course, and the annuity interest rate.

What Determines the Interest Rate For The Annuity?

The American Council on Gift Annuities (ACGA) has published suggested charitable gift annuity rates since the 1920's. Although a charity is free to offer any schedule of rates it wishes — so long as its rates don't exceed the limits imposed by federal and state laws — most charities, including our 54Freedom Foundation, do in fact, follow the rates suggested by the ACGA.

How Often Will The 54Freedom Gift Annuity Payments Come?

The payout options can be either immediate or deferred. In addition, you can select the frequency with which you receive payments, be it, monthly, quarterly, semiannually, or annually.

How Is the Amount of the Deduction for a 54Freedom Gift Annuity Calculated?

There is an immediate tax deduction for current year with 5 year carry forward, if needed. The actual deduction amount is the amount of the contribution to the charity, minus the present value of the payments that will be made to the beneficiary. We make the calculation using IRS tables regarding life expectancy and assumed earnings as well as the annuity rate.

How Are 54Freedom Gift Annuity Payments Taxed?

If the 54Freedom Gift Annuity is funded with appreciated assets such as a mutual fund or deferred annuity, and the original donor is the one receiving gift annuity payments, part of the payment will be treated as ordinary income, part will be treated as capital gain, and part tax-free return of capital. We can make this projection for you as part of the case design process.

How Will I Know What Taxes to Pay Each Year?

You will receive an IRS Form 1099-R.

What is 54Freedom Securities, Inc?

54 Freedom Securities Inc is a New York C corporation based in Cazenovia NY. It is a firm that sells financial products both fixed and variable with Sinclair and Co., a broker dealer in Darien, CT. With a patent pending process for electronic product sales it specializes in fund raising for charitable organizations, mainly in the Disability community.

How Can 54Feedom Help Me?

The 54Freedom team has Estate Planning, Planned Giving, Insurance, and Tax Experts on staff to help you. We will begin by sending you a free Starter Kit. If this looks like something you would like to explore more deeply, we can arrange a meeting with your advisors, and family members as appropriate, to provide a detailed illustration of how a 54Freedom Gift Annuity transaction might work for you.

What Information do you need for a detailed illustration of how this might work for me?

Click here to see our interactive illustration fact-finder. The information we need includes your name, address, birth date and gender of donor, as well as amount of the assets you would like to use in a 54Freedom Gift Annuity transaction, the likely timing of the gift, and what your tax rate was last year. For the projections we will also need to know who the annuitant(s) are likely to be, their age(s), sex(es) and states in which they reside, as well as the tax rate percentages.

I'm Interested. What do I need to do next?

Click on here to get started. We will ask you for your contact information and send you a Starter kit.

Disclaimer: This is not tax or legal advice. Please be sure to involve your tax and legal advisors in any transaction.