By Cynthia Flash, Special to JTNews
The way Merle Griff sees it, a new giving program offered by the Jewish Federation of Greater Seattle allows the “little guy a chance to do a big thing.”
Griff, a lifelong Seattleite who spent 40 years in the insurance business, is talking about the Federation’s new charitable gift annuity program. The program — launched this month — allows individuals to set up gift annuities that will not only pay them a monthly income for life, but will ultimately benefit the Federation or another charity when the person dies.
Griff is the first in Seattle to set up such annuity through the Federation. With his background in insurance and estate planning, he said it not only makes sense from a financial and tax planning standpoint, but from a philanthropic perspective as well.
“I’m a little guy. I don’t have a big estate,” says Griff, who at age 79 lives a block from the Federation office and for years has participated with their Professional Advisory Roundtable, a group of accountants, estate attorneys, insurance specialists, and other financial planners, that meets bi-monthly. “I live alone. Here’s how the little guy can do a big thing.”
Charitable gift annuities are designed for people age 65 and older looking for investment income, tax deductions, and the ability to make a long-term financial commitment to a charity. The charitable gift annuity is set up while someone is alive and pays them a steady monthly income for their entire life.
Unlike investing in the stock market or putting money in a savings account, the monthly payments are guaranteed — and the annuity rate is higher than the interest rate on traditional investment tools. For example, a one-year certificate of deposit currently pays less than 2 percent. A charitable gift annuity for someone who is 65 years old will pay 6 percent. At age 80, the rate is 8 percent. When the person dies, the Federation distributes the remainder to the charities designated by the donor.
Any Seattle charitable institution can benefit from this program. While the Federation will act as the facilitator, any entity — whether a synagogue, a Jewish school, or any other charitable organization — can receive the benefits of the annuity.
“This is what we should be doing — helping to make the tide rise and lift all the boats,” says Federation President Robert Spitzer. “This is a vehicle for giving that people have been asking for. If we can help meet the desires and help facilitate Jewish philanthropy, that’s our job.”
Under the Federation’s gift annuity program, donors contribute a minimum of $10,000 to acquire an annuity, which will be managed and distributed by the Federation.
Michele Rosen, chair of the Federation’s development committee, said the gift annuity program is part of the Federation’s larger effort to create a service for all donors to contribute through their estate plans.
“The areas of planned giving, legacy giving and endowment giving will ensure the Federation’s future, and enable donors to leave a legacy to the community,” Rosen says. “It is an especially good idea for older donors, who have been tried and true contributors, who want the cash and to continue their gift. It is a complete win-win.”
Paul Stone, the Federation’s vice president for Jewish philanthropy, explains that the Jewish Federation wants to be “The Seattle Foundation” for the Jewish community, making Federation the one-stop-shop for Jewish donors who want to leave any type of gift to any charity through their estate plans.
“That’s our goal — not just to create this tool for the benefit of the Federation,” says Rosen, “but to create a tool to benefit the Jewish community here and around the world.”
Griff, who regularly volunteers at the Kline Galland Home and is a long-time supporter of the Federation and other Jewish organizations, has decided that upon his death, half of the money left in his annuity will go into the Federation’s unrestricted fund. The other half will go into an endowment fund at the Federation set up under his name and the name of his daughter Nadine, who died of breast cancer.
He views the charitable gift annuity as a way for him to continue to earn an income off his investment, and ultimately to help the charities he cares about. From his annuity, he’ll receive income every month until he dies. Griff doesn’t expect that to happen any time soon, however. Both his parents lived until they were 90 years old. One aunt died at age 96, the other at age 99.
“I’m going to make it to 100,” said Griff, who is legally blind and admittedly hard of hearing, yet still has the spunk and sense of humor of a man who likes a good laugh. “That’s 21 years away. I’m going to receive close to twice what I invested!”
In the first year, a substantial federal tax deduction is allowed. In addition, through life expectancy, a significant portion of the payments will be tax-free.
For more information about gift annuities, contact Paul Stone or Dayna Klein at the Federation at 206-443-5400.
Cynthia Flash is a media consultant for LEAVE A LEGACY of Western Washington, a program to promote charitable estate planning. It is supported by more than 500 non-profit organizations in Western Washington, including the Jewish Federation. More information about LEAVE A LEGACY of Western Washington is available by calling 1-800-682-0090 or at www.leavelegacy.org.