Gift Annuity

Questions About Our Charitable Annuity Program

What is a Mercy Home Gift Annuity?
A Mercy Home gift annuity is a contract between you and Mercy Home. In exchange for your gift to Mercy home for the benefit of our children, you receive payments for life.

What are the financial benefits of a Gift Annuity?
At the time of your gift, you are allowed an income tax deduction. In addition, a portion of each of your payments is tax-free over your life expectancy. We also provide tax information for your records at the end of every year.

Why would someone want to establish a Gift Annuity with Mercy Home?
Quite simply, to enable us to continue our century-old mission of saving lives of children who urgently need our care. The number of homeless and abused children is growing at a phenomenal rate each year. Mercy Home is committed to making sure that we continue to be a "port in the storm" for God's children.

Establishing a Gift Annuity seems complicated; how does it work?
Consider the example of a 75-year-old who donates $10,000 in cash to establish a Mercy Home Gift Annuity. Based on her age, she will receive a gift annuity rate of 8.1%, providing her with an income of $810 a year. She will also be allowed a charitable deduction for a portion of her gift. If you would like to see the gift annuity rate you would receive based on your own age, click here.

Can I use stocks or bonds to fund my Gift Annuity?
Yes. And long-term, appreciated securities used in this way may have significant tax advantages related to your capital gain.

Are there different kinds of Gift Annuities?
Mercy Home issues immediate and deferred payment gift annuities. You may also establish an annuity with another person, such as your spouse. Some establish annuities to help someone else, for example, an aging parent, a sibling, or a devoted friend.

Are Mercy Home Gift Annuities safe?
The annuity contract is legally binding. Your payments, which are backed by all the assets of Mercy Home, are guaranteed for the rest of your life.

Are there any requirements regarding a Mercy Home Gift Annuity?
The minimum age for an immediate payment gift annuity is 60, deferred annuities can be issued to anyone 45 or older. We require a minimum of $1,000 to establish a gift annuity ($2,000 minimum for a deferred annuity). Payments can be sent to you annually, semi-annually, quarterly or monthly.

If you would like further information or to receive a personalized gift annuity proposal, please call Dan Pritchard in our Planned Giving office at 1-800-378-8266 or via e-mail at mail to: danpri@mercyhome.org.