Serving Union County since 1953 A 501(C)(3) Charitable Organization 126 N. Main Street, P.O. Box 608, Marysville, Ohio 43040 Phone: 937.642.9618 Fax: 937.642.7376 Helpful Articles from the Union County Foundation Director Alternative to Low Interest Rates By David Vollrath, Executive Director Union County Foundation Here are some numbers you might find interesting. The highest prime rate since 1947 was 21.5% on December 19th, 1980. The lowest prime rate since 1947 was 1.75% on Dec. 1st 1947. More recently the prime interest rate has fallen seven times since its most current peak of 8.25% on June 29, 2006. The prime rate today is 5%. Falling interest rates are wonderful for borrowers but less than great for “savers’ who depend on interest income. Since we can’t expect to earn the high rates of 1980 and the stock market seems to be a roll of the dice what choices are there? If you have been blessed with a benevolent heart one option to consider is a charitable gift annuity (CGA) or what more descriptively might be called a “lifetime income producing charitable gift.” A CGA is an agreement between an individual and a qualified charitable organization such as the Union County Foundation. Under this agreement a donor transfers cash or other assets of value in return for fixed quarterly income for the rest of his or her lifetime. A joint CGA will pay fixed income for life as long as one spouse continues to live. Upon the death of the last spouse the specified charity(s) receives the remainder of the donor’s original gift. Usually this is around 50% of the original gift. Uniquely the Union County Foundation permits the annuitant to name multiple local charities of his/her choice to be the eventual beneficiary. The beneficiary could be your church, fraternal organization, YMCA, Hospital, etc. This is consistent with our goal of promoting charitable giving in Union County. The fixed rate of interest paid out to the annuitant is based on the age of the donor. For example a donor age 68 will receive lifetime quarterly checks based on a rate of 6.0 %, a donor age 77 will receive lifetime quarterly checks based on a rate of 7.0% and a donor age 82 will earn 8% for life. If you are fortunate enough to have reached the age of 89 you will be paid 10.1% for life. During the annuitant(s) projected life span much of the quarterly income received is tax-free. A significant portion of the original gift is also tax deductible. As you can see a CGA not only pays you a substantial interest rate but it offers you tax savings as well. Perhaps most importantly a CGA gives you an attractive way to leave a legacy to the charity(s) of your choice while benefiting you during your lifetime. It is important to understand that the dollars you place into a CGA will not be part of you estate and will not be passed on to you heirs. CGA’s are an attractive way to leave a legacy to the charity(s) of your choice while providing you fixed income during your lifetime. The following are some commonly asked questions regarding CGA’s. Do the quarterly payments I receive change over time? No, the interest rate on the quarterly checks you receive is set and fixed when your CGA begins. The quarterly payments you receive will not be lowered, cancelled, delayed, or suspended regardless of the stock market or the national economy. Can I change the beneficiary(s) over time? Yes, with a notarized change of beneficiary form you can change the beneficiary. Will the quarterly payment I receive change if the annuity is written on two lives rather than just one? Yes, since the period of their combined life expectancies is typically longer than one person’s life expectancy the rate of payment will be somewhat lower. Payments for two life CGA’s are available upon request. Will my charitable gift annuities be part of my estate? No, CGA’s are not part of your estate therefore you avoid estate taxes and probate costs. The Union County Foundation is equipped to help you achieve your charitable goals by providing: planned giving and estate planning resource information, charitable gift annuities/life income plans, and a broad array of charitable choices. The Foundation encourages you to work closely with your professional advisor(s) as you develop your estate plan and consider your present and future charitable goals. Please call us at 937-642-9618, email info@unioncountyfoundation.org, reference our website at www.unioncountyfoundation.org, or stop by our Marysville office at 126 N. Main St. We are committed to helping you… “preserve your footprint in time.”

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