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New York Gift Annuity Disclosure Statement
Gift Annuity Disclosure Statement
Description of a Gift Annuity
A gift annuity is a simple contract between the donor(s) and Hadassah, The Women’s Zionist Organization of America, Inc. (hereinafter "Hadassah"). In exchange for the donor's(s') contribution, Hadassah promises to make fixed, guaranteed payments for life to one or two annuitants (usually, but not necessarily, the donor(s)). The amount paid is based on the age(s) of the annuitant(s), in accordance with Hadassah's rate schedule.
Not a Commercial Investment
The act of establishing a gift annuity with Hadassah is not, and should not be viewed as, an investment. Rather, it is a way to receive annuity payments while making a charitable donation. In this respect, a gift annuity issued by Hadassah is different from a commercial annuity. However, the fact that you are making a charitable gift may provide you with tax benefits, including a current federal income tax charitable deduction (if you itemize your deductions), annuity payments which are partially tax-free, and future estate tax savings.
Gift Annuity Rates
Charitable Gift Annuity rates have been calculated in accordance with the rates recommended by the American Council on Gift Annuities as of February 1, 2009. The rates provide attractive payments to the donor and/or other annuitant(s) and also to result in a significant portion of the contribution remaining for the charity. Because a charitable gift is involved, the rates are lower than those available through commercial annuities offered by insurance companies and other financial institutions.
Assets Backing Annuity
The annuity payments are a general obligation of Hadassah, and they are backed by all of our assets (subject to security interests). On December 31, 2008, our total unrestricted funds exceeded $140,000 million and they are invested in stocks, bonds, mutual funds and other vehicles. On August 31, 2009, our total invested funds in our Gift Annuity Program, exceeded $44.5 million. Assets received by Hadassah for gift annuities are managed by Comerica Bank N.A., in a conservative and disciplined manner. If Hadassah should ever fail financially, individuals entitled to receive annuities will qualify as general creditors of Hadassah.
Responsibility for governing Hadassah, which was established in 1912, is vested in a Board of Directors comprised of 136 persons, who are elected by a nominating committee, or specially appointed by the President. Common investment funds managed by our organization are exempt from registration requirements of the federal securities laws, pursuant to the exemption for collective investment funds and similar funds maintained by charitable organizations under the Philanthropy Protection Act of 1995 (P.L. 104-62). Information in this letter is provided to you in accordance with the requirements of that Act.
Points to Remember- A contribution for a gift annuity is irrevocable. The principal you contribute cannot be returned to you.
- The right to annuity payments may not be assigned to any person or organization, other than Hadassah.
- The gift date is the date when you actually transfer assets. In the case of cash, it is the date you mail or deliver a check. In the case of an electronic transfer of securities, it is the date they are received into the account of Hadassah. If you have certificates, it is the date they are properly endorsed and mailed or delivered.
- The gift annuity is governed by applicable state laws.
For More Information
This disclosure statement is intended to provide basic information regarding the gift annuities issued by Hadassah. If you have additional questions concerning Hadassah's gift annuity program, please call or write to Anat Becker, Director, or Lori B. Lasson, JD., Associate Director, Planned Giving and Estates, 50 West 58th St., New York, NY 10019; (800) 428-8884.
September 19, 2009
The information, content and calculations contained herein are intended for educational purposes only and are not intended to provide legal, tax or other professional advice to be relied upon. We encourage you to consult with an attorney, tax advisor or accountant. Figures cited in examples are for hypothetical purpose only and are subject to change. References to estate and income taxes include federal taxes only. State income/estate taxes or state law may impact your results.