17. What is a Gift Annuity?

1. A Gift Annuity is an agreement between an individual donor and French Camp Academy. The donor gives assets to FCA and receives fixed payments for the rest of the donor’s lifetime and/or the lifetime of another person.

• Example: Mr. John Doe is 75 years old and wants to support French Camp Academy but still needs a source of income in his retirement years. Mr. Doe funds a gift annuity with French Camp for $25,000 cash. At age 75, Mr. Doe qualifies to receive 8.5% on his gift of $25,000. Mr. Doe will receive a check each quarter for $531.25 or $2,125.00 annually. He will continue to receive these checks from AmSouth Bank until his death; in addition, he will be able to take a $10,909.75 tax deduction in the year the gift is given.

Q.  What insures the donor’s payments for life?

1. Each Gift Annuity payment is backed not only by the donor’s gift, but by French Camp Academy's total net worth.

Q. Who administrates French Camp Academy’s Gift Annuities?

1. AmSouth Bank administers payments for Gift Annuities and processes most tax information.

Q. Are there tax benefits for Gift Annuities?

1. Yes. Because a portion of your gift will eventually be used for FCA, it is tax deductible in the year you make your gift. Even part of your annual income is tax-free for a period of years as well.

Q. How is the rate of annuity income calculated?

1. The individuals rate of interest is based on age or ages of the donor(s). A few examples of FCA’s rates follow:

    

One Life Age 70 = 7.8

One Life Age 75 = 8.5%

One Life Age 80 = 9.6%

Two Life Ages 70 + 75 = 7.3%

Two Life Ages 75 + 80 = 7.9%

Two Life Ages 80 + 82 = 8.5% 

Q.  What if I am thinking about a Gift Annuity for FCA, what should I do?

1. Give us a call at 662/547-6482 and ask to speak with someone in the Development Department, or contact us by clicking here.
2. Print out the Gift Annuity questionnaire and mail it to us: French Camp Academy, One Fine Place, French Camp, MS 39745, Attn: Development Dept.
3. We will get back to you with a personal example of what a Gift Annuity could do for you and help support the ministry of French Camp Academy.

** These calculations are for illustration purposes only and should not be considered legal, accounting, or other professional advice. Your actual benefits may vary depending on the timing of the gift.