Mary Elizabeth, age 78, has enough savings to meet her retirement needs. She wants to help the Church with a generous donation but is concerned about her future income with the low interest rates available to her.

She established a $10,000 Catholic Gift Annuity, which specified that the remainder of the annuity balance benefit her local parish upon her death.

Elizabeth’s Benefits

  • Cash Donated                                                  $10,000.00
  • Annuity Rate                                                             6.80%
  • Annual Annuity Payment                                   $680.00
    • Tax-Free Through 2024                             $487.11
    • Taxable                                                          $192.89
  • Charitable Deduction                                        $4,826.10


Mary Elizabeth, who itemizes her deductions when filing her tax return, includes the charitable deduction of $4,826.10. At her 25% tax bracket, this generates a tax savings of $1,206.52.

*Information for this example is provided by Catholic Extension Society