The purpose of this initiative is to assist priests over 60 years old with financial security in their retirement years.
Priest establishing a Catholic Gift Annuity for a minimum of $10,000 will qualify for a Matching Program to fund a second Catholic Gift Annuity of $5,000 for their benefit.
A Catholic Gift Annuity is a simple contract. A donor donates to Catholic Gift Annuity and in return, receives fixed payments for life. The remaining balance of the gift benefits the Catholic organization(s), designated by the donor, within the Diocese.
What is a Catholic Gift Annuity?
- A gift is made to Catholic Gift Annuity, receive a Charitable Deduction the year the gift is made.
- Receive fixed payments for the rest of your life, a portion of the payments is tax free.
- The balance that remains after your lifetime, will benefit the Catholic organization you designate.
Matching Program Options
There are two options for this Matching Program.
- Priests between 60 and 70 years old are able to make payments to fund an annuity over 5 years. Once they fund the $10,000, the priest will receive a Matching Gift from Catholic Extension Society to fund a second $5,000 Catholic Gift Annuity for their benefit.
- Priests aged 70 years old or older establishing an annuity of $10,000, will receive a Matching Gift from Catholic Extension Society to fund a second Catholic Gift Annuity of $5,000.
Please see example below:
| Age | Priest’s contribution | Payout rate *(see note) | Annual Payout | Charitable Deduction *(see note) | Matching gift from Catholic Extension Society | Payout rate | Annual Payout *(see note) | Total Annuity for Priest | Annual Payout |
| 65 | $10,000 | 5.4% | $540 | $3,756 | $5,000 | 5.4% | $270 | $15,000 | $810 |
*These are current rates and are being used for this demonstration. The Gift Annuity will be based on the age of the Priest at the time his Gift Annuity is fully funded, and the rates being offered at that time. The American Council on Gift Annuities adjusts the rates periodically. The charitable deduction will be determined at the time of the gift as well.
The payout rate received on the $10,000 contribution will be higher than the rate indicated above because of the Matching Gift from Catholic Extension Society. For example, if you are 65 and fully fund your annuity now, you would receive a payout rate of 5.4% or $540 each year for the rest of your life. In addition, you will receive 5.4% or $270 from the Catholic Extension Society Matching Program of $5,000. This equals $810 a year.
Financial Training and Resource Opportunity
This Matching funding provides the priest with an education opportunity to meet one on one with a financial professional. This personalized session will give helpful information on planning for retirement. Participants will meet with Jennifer Cantrell. Jennifer is a Certified Public Accountant in private practice in Albuquerque, NM. Her practice is limited to clergy taxation, retirement, and education, and she consults with dioceses and archdioceses in the US on best practices, parish management, software conversions, and policies and procedures. She was a member and chair of the Archdiocesan Finance Council in the Archdiocese of Santa Fe for 27 years. She manages the retirement funds for clergy in four (arch)dioceses and does workshops and trainings across the United States.
Other important factors to note:
- Program is limited to $5,000 per priest. A priest may want to write a Gift Annuity for more than $10,000 (and this should be encouraged) but the matching program is limited to the first $5,000 and only one per priest.
- Eligibility requirements. The priest must be serving in or retired from an Extension Diocese and incardinated in a diocese in the United States. Religious Order priests and priests incardinated with dioceses outside of the United States are not eligible for the matching program.
- Payment Plan. If the priest is going to fund their annuity over time, they should complete the application including the amount of the Annuity desired. They should write ‘Payment Plan’ after the amount of the desired annuity. Catholic Extension Society will reach out to them to establish the payment plan schedule.
- Payment Plan Annuity – Annuity completed with Final Payment. The Annuity Rate and Final Contract for the Annuity will be based upon the age of the priest and current Payout Rate at the Date of the Final Payment to fully fund the annuity.
To Apply
Click here to access the matching gift application form
For more information
Contact Betty Assell, Manager of Annuities, at 312.795.6089 or bassell@catholicextension.org.