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The Older Iowans Fund

Since 1997, the Older Iowans Fund endowment has been building and strengthening the network of services that help seniors in East Central Iowa remain in their own homes today and tomorrow. The Older Iowans Fund helps prevent premature and unnecessary nursing home placement by funding services that are helping to retain the independence and dignity of seniors.  A partnership between Heritage and The Kirkwood Community College Foundation, the Older Iowans Fund receives gifts through outright donations, gifts of cash or stock, wills, trusts, annuities or life insurance.

The Older Iowans Fund endowment is making a difference in the lives of older adults in our communities.  For example, in 2008 the Older Iowans Fund has provided grants to low-income, frail older adults who were devastated by the historic flooding in our region.  The Fund has helped pay for a wheelchair accessible bus for to transport clients at risk for nursing home placement to adult day care and supported a community based program that helps meet the unique needs of those with dementia.

How a Charitable Gift Annuity Works

The concept of a gift annuity is simple and has been around for more than a century. A person makes a gift of cash or marketable property to a charitable organization. The organization then reinvests the assets and agrees to make fixed annual payments to the donor for life (and, if desired, for another beneficiary’s lifetime). Upon the death of the last beneficiary, the funds are available for the charity’s use.

The transaction is partly a charitable gift and partly the purchase of the income interest. The annuity rate is the dollar amount returned to you annually as a percentage of the value of your gift, and these rates are related to the ages of the recipients. A contract specifies the frequency of payments (typically quarterly or semiannual installments) and the date of the first payment.

How you Benefit

In addition, to having the benefit of lifetime payments for yourself and possibly another person, there are tax advantages.

How to Fund a Charitable Gift Annuity

Cash is the most common asset used to fund a charitable gift annuity. If you contribute appreciated securities such as stocks, bonds and municipal bonds, you will need to pay some capital gains taxes on the gain on the “sale” portion of the transaction. These capital gains taxes are paid over your life expectancy—they are not all payable in one year. Funding a charitable gift annuity with real estate is another option.