Examples of current and deferred Smart Consumer Gift Annuities

ONE LIFE - SMART CONSUMER GIFT ANNUITY EXAMPLE

Donor, age 75, decides to contribute $10,000 of the proceeds from a matured CD in a Smart Consumer Gift Annuity. The donor chooses himself as annuitant and enters into a gift annuity agreement with Consumers Union in August 2011. The transaction occurs as follows:

1. Donor's gift to CU	$ 10,000
2. Fixed lifetime annuity rate	5.8%
3. Annual annuity payments (quarterly, semi-annually or annually)	$ 580*
4. Donor's current income tax charitable deduction	$ 4,577

* Under this example, 73% of annual annuity payments are tax-free for 12 years.

TWO LIFE - SMART CONSUMER GIFT ANNUITY EXAMPLE

Donors, ages 75 and 73, decide to contribute $10,000 that they have invested in a maturing Treasury in a joint and survivor Smart Consumer Gift Annuity. The donors choose themselves as annuitants and enter into a gift annuity agreement with CU in August 2011. The transaction occurs as follows:

1. Donors' gift to CU	$ 10,000
2. Fixed lifetime annuity rate payable to survivor's death	4.9%
3. Annual annuity payments (quarterly, semi-annually or annually)	$ 490*
4. Donors' current income tax charitable deduction	$ 3,756

* Under this example, 71% of the annual annuity amount is tax-free for 17 years.

ONE LIFE DEFERRED - SMART CONSUMER GIFT ANNUITY EXAMPLE

Donor, age 50, decides to contribute $10,000 of the proceeds from a money market account in a Smart Consumer Gift Annuity. The donor chooses himself as annuitant and chooses to begin receiving payments at age 65. The gift annuity agreement is entered into between the Donor and the charitable organization in August, 2011. The transaction occurs as follows:

1. Donor's gift to CU	$ 10,000
2. Fixed lifetime annuity rate	7.6%
3. Annual annuity payments (quarterly, semi-annually or annually)	$ 760*
4. Donor's current income tax charitable deduction	$ 3,520

* Under this example, approximately 39% of the annual annuity amount is tax-free for 20 years.