Charitable gift annuities are very simple. You make an irrevocable gift to HLI, and in return we promise to pay you an income at a fixed rate for the rest of your life. You can include a second person as a beneficiary if you choose - a “two-life annuity.” A gift annuity increases your income, reduces your income tax, and at the death of the last annuitant/investor, the remaining funds belong to HLI. There is no estate tax to pay on these funds.

“We make a living by what we get,
but we make a life by what we give." 
--  Winston Churchill 

 Your investment in a Human Life International annuity will provide you with a safe and secure income for life at a fixed rate and with substantial income tax benefits.

At your death, the balance in your annuity investment account becomes your gift to Human Life International, which will help us to defend life internationally.

Frequently asked questions…

We have selected the following questions and answers from the many inquiries received in the past asking about the Human Life International Annuity Program. We hope they will explain how and why our annuity program works - for you, for loved ones you choose to include, and for the charitable programs funded. If you have a question unanswered by what follows, please call Bill Williams (540) 622-5285.

QUESTION: "What is a charitable annuity?"

ANSWER: A charitable annuity is a contract between you and the charity issuing the annuity - in this case, Human Life International. In return for your donating a sum of money (or transferring other saleable, qualified assets) to HLI, we promise to pay you a fixed income for the rest of your life. Such agreements are irrevocable and cannot be amended.

QUESTION: "How does it work?"

ANSWER: Different charities operate in different ways. HLI’s Annuity Program may be unique in some regards - notably in the safety it provides to each annuity account. When your annuity funds are received, they are immediately invested to provide a stable income. None of these funds are spent for any purpose whatsoever other than to pay the annuity fund obligations. Only when all obligations to pay income to the annuitant cease - that is, at the death of the annuitant - do the funds become available to HLI for its needs.

Annuity disbursements can be made by check or automatic deposit annually, semiannually or quarterly, at your election. Year-end tax statements (form 1099) are routinely furnished by January 31st.

QUESTION: "How much income will a Human Life International Annuity pay me?"

ANSWER: That depends upon how much you invest and your age (or the age of any other person to receive the income) at that time. However, your annuity income continues for your lifetime (principal expended), regardless of how many years that may be - and the amount of the income always remains the same.

The following table shows the fixed rate of annual income for each age level commencing with age 65 (rates for younger ages may be available upon request).

Single Life Annuity Rates
Rates effective 2/01/04 – American Council on Gift Annuities:

QUESTION: "Can I buy an annuity to pay the income to me for my lifetime and then continue disbursements to someone else?"

ANSWER: Yes. It's called a "two- life" annuity. The rate of income (and tax deduction) will be based on a combination of the ages of the two people being benefited. The annuity continues paying income so long as either of the persons is alive. The rate for a two life annuity is usually lower than the rate for a single life annuity for either of the parties. There is a rate for any combination of ages provided both persons are 65 or older. If you would like a sample two life annuity, please fill in the annuity form.

QUESTION: "Can I invest in an annuity now and have the income payments start sometime in the future when I will need the income more? And will that give me a higher income when the payments do begin?"

ANSWER: Yes and Yes. This is called a deferred annuity. You purchase the annuity now but direct HLI to commence payments at a later date, which you specify - for instance, when you expect to retire and will not have as much income as now. In the meantime, your annuity investment account is accumulating income free of income tax and growing ever larger. Then, at the time you specified when you invested in the annuity, Human Life International will commence making annuity payments in an amount that will be substantially higher than if you had waited to make the same investment.

A deferred annuity can be an ideal way to provide retirement income using tax sheltered income. And anyone can buy a charitable annuity - and get all the tax benefits - regardless of the amount of income they have or whether they are covered by a company retirement plan.

For a deferred charitable annuity sample, please fill in the annuity form.

QUESTION: "Can I buy a Human Life International annuity and name someone else to receive the income?"

ANSWER: Yes. It makes a wonderful gift that will give a guaranteed income to the person you name for the rest of his/her life - each annuity payment always reminding the recipient of your love and generosity. It's a nice way to provide a Christmas or birthday gift, every year, for someone you love even after you are gone. There are some income tax and capital gains issues with this type of gift annuity.

QUESTION: "How will my income from a Human Life International's annuity be taxed?"

ANSWER: You will receive three important tax benefits when you invest in a charitable annuity.

First - a portion of every annuity payment is tax free during the actuarial life expectancy of the annuitant. This means more usable, after-tax income than from ordinary, taxable investments.

Second - in the year when you purchase the HLI Annuity you become entitled to an itemized charitable contribution deduction on your federal income tax return. In some cases this deduction (often as much as 40-45% of the investment amount) is so large it cannot be fully used in the first year. Any unused balance can be carried over and used in succeeding years (up to five years).

Third - the value of the annuity is not typically taxable in your estate for estate tax purposes.

The Human Life International Development Manager will make all of the calculations. He will tell you the amount of the annual payment to exclude from taxable income and the amount of the year-of-purchase deduction. You must always check with your tax return preparer to make sure this information is correctly reported.

QUESTION: "I would like to keep my cash assets. Could I use securities to invest in an annuity?"

ANSWER: It's an excellent idea! You can use your securities (stocks, bonds, mutual funds, etc.) to invest in an HLI Annuity. It's a simple and well-established technique. If you transfer publicly traded securities to HLI, you will be credited with the fair market value of the securities without the expense of selling them. A charitable annuity will be issued in the same amount as the value of the securities.

And there are important tax benefits possible, too! If those securities have increased in value since you bought them and if you have owned them for the required period of time, you may be able to avoid forever a substantial part of the tax on that capital gain - and whatever capital gain tax is due can be spread out over 5 years, lessening the tax bite and maximizing your annuity investment. There are some conditions that must be met before all the tax benefits can be realized.

QUESTION: "How can I find out exactly what Human Life International will pay me (or someone else I name) and what the exact tax benefits are?

ANSWER: Fill out the annuity form annuity_form.pdf (71 kb), and mail it to Human Life International.