Advancing engineering profession also leads to tax break for members


Did you hear about the ASME member who is getting a 9.2 percent rate of return on an ASME Foundation Charitable Gift Annuity?" asked John Mihm, who is chairing the Foundation's Planned Giving Initiative.

"This individual is also reaping important tax savings, all the while knowing that he is advancing the mechanical engineering profession through his gift to the ASME Foundation," Mihm continued, adding that the donor then became a Founding Member of the Foundation's Archimedes Club, the recognition group for those who make a planned gift to the ASME Foundation.

Through a charitable gift annuity, an individual who donates money to the ASME Foundation receives immediate and future tax advantages as well as a guaranteed lifetime income in the form of an annuity.

The interest rate is based on the donor's age at the time the gift is made and remains the same for the lifetime of the donor. The older the donor at the time that the gift is made, the greater the rate of return on the annuity would be. For example, with current interest rates, a single life plan for someone who is 64 years old would receive a 6 percent return, while someone who is 89 will receive 11 percent. Charitable gift annuities can be designed for a single annuitant or for two annuitants.

The ASME Foundation subscribes to rates published by the American Council on Gift Annuities. That council develops rates to provide benefits to both the organization and the donor.

"Planned giving continues to be a popular way for individuals to maximize their personal, financial and philanthropic goals and is an important part of many sound estate plans," said Warren Leonard, the ASME Foundation's director of development. "As news spreads about the benefits of the planned-giving services offered by the Foundation, membership in the Archimedes Club is expanding."

As part of its "Drive for 125" campaign, the ASME Foundation wants to secure 125 Founding Members of the Archimedes Club by November 2005. That goal was established to commemorate the 125 anniversary of ASME. At present, there are 37 Founding Members of the Archimedes Club.

To learn more about how an ASME Foundation charitable gift annuity can be tailored to meet your needs, or to hear about other planned giving opportunities, call Warren Leonard at (212) 591-7846 or e-mail leonardw@asme.org to arrange a consultation.

 

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