To offset the tax you’ll owe on your IRA payout, you’ll earn a 40 percent Montana tax credit for endowed generosity and a federal charitable deduction when you set up a charitable gift annuity.
What can be used to fund a charitable gift annuity?
Charitable gift annuities are offered by a number of significant nonprofit organizations, including a number of universities. You begin by making a single donation to a charity. After that, the gift is put into a reserve account and invested. For the rest of your life, you get a predetermined monthly or quarterly payment (usually funded by the investment account) based on your age(s) at the time of the gift. The charity receives the remainder of the contribution at the end of your life (and your spouse’s, if you’re giving as a couple).
Charitable gift annuities can be set up by singles or married couples alike. As “annuitants,” you are the beneficiary of annuities and many other insurance plans. Your annuity may be funded by monetary donations, securities, or gifts of personal property, depending on the organization. As little as $5,000 can be used to establish a charitable gift annuity, but in most cases it is much more.
It’s also possible that annuitants, in addition to receiving an income stream, could benefit from a one-time tax credit based on the expected amount that would ultimately be donated to charity once all the annuity payments have been completed. Depending on your statistical life expectancy, you may be able to defer paying taxes on a portion of the benefits you receive.
How do I fund a charitable annuity?
Donations of cash, publicly traded stocks, or other assets such as real estate, art, or collectibles can all be used to support a charitable gift annuity. A portion of your donation may be eligible for an immediate tax deduction.
Can I contribute from my IRA to a donor advised fund?
Yes. Donor-advised fund accounts are not eligible for QCDs during your lifetime, but you can designate your IRA, 401(k), and other tax-deferred assets as beneficiaries at your death.
Can you fund a charitable gift annuity with a QCD?
Let’s clear up any ambiguity in terminology first. Qualified Charitable Distribution from an IRA is also known as an IRA Rollover gift in some circles. This is a clumsy and inaccurate word, as an IRA Rollover is a different process. IRA Qualified Charitable Distribution is a better term (QCD).
Donations of up to $100,000 per year may be transferred directly from an individual’s Individual Retirement Account (IRA) to a church or 501(c)(3) organization. These gifts are included toward the donor’s RMD but do not raise the donor’s income. Only a charitable gift annuity or a donor advised fund can get the QCD. A foundation or sponsoring organization cannot receive it. QCDs are still authorized at 70-1/2 despite the SECURE Act requiring RMDs to be taken at 72.
The IRA QCD provides your donors with three important strategic advantages.
- Donations to charity aren’t tax-deductible for those who use the standard deduction. They are, in effect, taxed on their charitable donations. This is remedied by the IRA QCD.
- People who give a lot but don’t itemize can save money on their taxes by using the standard deduction rather than itemizing.
- Taxpayers can minimize their provisional income by making IRA Qualified Charitable Distributions. The IRS uses a metric known as “provisional income” to assess whether or not Social Security recipients are required to pay taxes on their payments. A recipient’s gross income, tax-free interest, and 50 percent of Social Security payments are added together to determine the amount of benefits they are entitled to.
Social Security taxation formulas and trigger points that allow up to 85% of social security benefits to be taxed complicate the third benefit, which is the most convoluted.
In addition to federal income taxes on their Social Security and pension income (and any taxable income), certain people must also pay state and local income taxes. They are more likely to do this if they have a considerable source of income in addition to their benefits (such as wages, self-employment, interest, dividends and other taxable income that must be reported on your tax return).
If you’re not doing your taxes on paper, you may not be aware that your Required Minimum Distribution can put more of your social security benefits into the tax bracket. Your RMD may have a double-taxation effect because of this. Because of their RMD, a person in the 22% tax bracket may be taxed at a rate of 40.77%. Donors should consult their tax professionals about how charitable giving can reduce their taxable income, which you, as a development professional, can suggest to them.
Donors might talk to their financial advisors about setting up a new Individual Retirement Account for charity donations. They can then use the new IRA to make QCDs by transferring the desired gifting amount there.
IRA rollover benefits for higher-income families will be discussed in a future issue; they are distinct but just as important.
Are charitable gift annuities taxable?
Giving to a charity and receiving regular payments for life is possible through a charitable contribution annuity. You have the option of starting payments right once or delaying them to a future date of your choosing. Gift annuities can be established for someone else, but the total number of annuitants associated with any one gift cannot exceed two. A written agreement between you and the charity spells out the specifics of the arrangement. Upon the demise of the annuitant(s), the charity is left with the remaining monies to carry with its goal.
Who establishes gift annuities?
Retirees who wish to boost their income, desire the security of set payments, and want to reduce their tax burden are the most common contributors of a gift annuity. In the following situations, a charitable gift annuity may be attractive:
- There is a low interest rate on a CD or other fixed-income instrument, and you’d like to enhance your income stream.
- Consider selling part of your stock or mutual fund shares in order to produce extra income, but you don’t want to pay capital gains tax.
- Fixed payments that are not impacted by interest rates or stock prices and that you can’t outlive are what you’re looking for in an investment.
- It is your goal to ensure that payments to a loved one will continue without the need for lengthy probate proceedings and at a low tax rate.
How is the amount of the annuity determined?
- In general, the older the annuitant, the greater the annuity payout rate under a gift annuity contract. The American Council on Gift Annuities sets the rates for most charities (ACGA). An attractive payment stream for the annuitant is balanced with a generous donation for the charity by the ACGA’s rates.
- It’s cheaper to make a charitable donation annuity payment than it is to buy an insurance policy. Commercial annuities may be a better option if you want to maximize the amount of income you will get over your lifetime. A gift annuity, on the other hand, can be a good option if you want to make a charitable gift, get a tax deduction, and get regular payments for the rest of your life.
What tax benefits are associated with gift annuities?
- In order to claim a federal income tax charitable deduction for some of the money you provide to the charity in exchange for a gift annuity, you will need to itemize your deductions. It is calculated by subtracting the contribution amount from the future value of the payments to the annuitant (s). IRS life expectancy tables and projected earnings are used to calculate the present value of the payments.
How will my payments be taxed?
- A gift annuity can be funded with cash, and some of the payments will be taxed as regular income and some as tax-free at the beginning. Your gift annuity payments will be taxed in three ways: as regular income, as capital gain, and as tax-free if you finance it with appreciated stocks or real estate you’ve owned for more than a year. Most of the time, these payments will be treated as ordinary income for tax purposes.
- A Form 1099-R is issued annually to the annuitant by the charity that issues the annuity. When it comes to income tax reporting, this form will tell you what to do. The charity and your financial advisors should be consulted for information on the taxation of gift annuity payments.
How do I get started?
- Find out if your favorite charity accepts charitable gift annuities by visiting their website. It’s possible that a community foundation may be able to help you set up an annuity for a specific cause or group, even if your own charity doesn’t.
- Inquire of the charity for an illustration of the costs, tax implications, and charitable deduction created by the donation.
- The financial illustration should be discussed with your tax and financial experts. If you’re looking to make a well-informed selection, they can assist you.
Is a charitable gift annuity irrevocable?
Additionally, a Charitable Gift Annuity generates an immediate income tax reduction, which may outweigh the benefits of a conventional charitable bequest. In spite of the fact that annuity payment rates are not interest rates (the donor loses the principal), the Charitable Gift Annuity becomes extraordinarily appealing if the donor is already preparing to transfer the principal to the charity at death. Charitable Gift Annuity payments are more akin to interest received on a $10,000 certificate of deposit, which the donor has already specified a charity to receive at death, because in both cases, the charity will get the principal upon death. However, there are still minor discrepancies that make this comparison imperfect. Donors can spend the full certificate of deposit at any time, but an annuity provides a lifetime income for the donor.)
Additionally, Generous Contribution Annuity is an irrevocable gift for the charity, which makes it more appealing than a charitable bequest.
Because the donation has already been made, the charity does not have to be concerned about the donor or his or her heirs making last-minute revisions to the donor’s original intentions.
After death, philanthropic goals are found to be fragile, according to studies (see James, R.N., 2013, American Charitable Bequest Demographics: 1992-2012).
Consequently, it is advantageous for a charity to be able to transform revocable bequest intents into irrevocable planned contributions, such as CGAs.
Leaving the same amount in a bequest gift gives no income tax benefit and no lifelong payments for the giver, whereas a Charitable Gift Annuity provides both.
The gift annuity is a considerably superior strategy for donors who want to both generate lifetime income and make a post-death donation to a charity than other options, such as investing and leaving a bequest to the organization in their will.
However, a donor’s altruistic aims are not met by obtaining an instant annuity from an insurance firm.
Writing a charity into one’s will, on the other hand, does not provide any tax benefits.
An irrevocable Charitable Gift Annuity, on the other hand, turns a donor’s revocable bequest decision into a win-win situation for the charity and the giver at the same time.
Instead, the charity’s commitment to make Charitable Gift Annuity payments is set in stone and cannot be altered by market fluctuations or investment returns.
The gift annuity payments must continue for as long as the charity exists.
Charitable Gift Annuities have been compared to leaving a charitable bequest up to this point.
Assumes that the charity receives a donation from a donor and holds on to the initial amount until the donor’s death, at which point they can use what’s left for charitable purposes.
It isn’t mandatory for the charity, though, to take this cautious approach (except in the State of New Hampshire).
Alternatively, a charitable organization may determine the portion of the gift that would be required to make the lifetime payments and immediately use the rest.
In the case of an organization that decided to do this, donors would be able to immediately see the results of their contributions.
Compared to a bequest gift in which the donor would not be able to witness its influence, this may be an enticing element for some donors.
Charitable Gift Annuity monies can be put to immediate use if the charity spends the anticipated gift component of the transaction.
The donor’s life expectancy and the charity’s investment returns are used to calculate this predicted gift share.
In the event that the projections are incorrect, there is considerable risk.
Charitable Gift Annuity funds carry a risk, which is why not all charities use the predicted gift part immediately.
In most jurisdictions, however, it is a viable alternative for charitable organizations to use in order to raise funds.
It is important to note that the charity must hold the amount predicted for donor payments plus a 10% cushion in Florida, Tennessee, Washington, Hawaii, New Jersey, and Wisconsin
There is a minimum of 10% cushioning in New York City.
Even in these jurisdictions, the Charitable Gift Annuity can be used immediately.
Charity may choose to use more than the “gift part” in some jurisdictions, but this creates a net liability for the organization in the future.
The Charitable Gift Annuity’s characteristics and benefits have been discussed up to this point.
However, the Charitable Gift Annuity has significant drawbacks.
Let’s begin by looking at the donor’s dangers.
The IRS form 990 for a nonprofit can be used to get a sense of a charity’s financial health.
For tax purposes, the IRS form 990 provides information about the charity’s financial status.
Individuals may ask for a copy of these documents from any charitable organization.
As a bonus, these forms can be found at free cost on a variety of websites.
Websites that now post IRS form 990s are listed here
How much of a charitable gift annuity is deductible?
You must itemize your deductions in order to reap the tax benefits. You won’t be able to deduct anything if you don’t do this. You can deduct anywhere from 25% to 55 percent of the amount you donate to charity from your taxable income the year you make the gift. Annuity income from a cash donation is often a combination of ordinary income and a tax-free return of the capital that you donated in the first place. The capital-gains liability on appreciated securities can be avoided in part up front and spread out over the course of your payments. Soft explains that each year, your charity sends you a 1099R document that details your tax obligations for the money you’ve made. It’s also important to check with your own charity for specifics.
Can you gift annuities?
However, when you transfer ownership of a contract to someone else, you aren’t actually transferring ownership of the annuitant. It is still your life that triggers and determines the quantity of rewards you receive. Any time the annuity is sold, the new owner can begin receiving payments, make changes to the beneficiaries, and take money out of the policy as they see fit.
Contact the insurance company and say that you want to transfer ownership of the annuity policy to someone else or a trust. However, there are some tax considerations to keep in mind.
You should check the status of an annuity before transferring it. There are both qualified and non-qualified annuities. An annuity that qualifies as a qualified retirement plan is one that was purchased using pre-tax dollars. It’s possible to use a non-qualified annuity as a retirement vehicle, but it’s not a requirement.
Whether you acquire a qualified annuity or a non-qualified annuity, your tax burden will be different. If done wrong, a qualified transfer can be more difficult than a non-qualified transfer.
Because of the unpaid pre-tax payments, an eligible annuity can’t be transferred. Non-qualifying annuities cannot be commingled with qualified annuities because they are both taxed differently. Transferring an eligible annuity can be done in two ways.
- Repurchase at a lower price. Cashing out the annuity and purchasing a new one is all that is required in this situation. This is the most inefficient method because you’ll have to pay tax on the funds at a regular income tax rate once you receive them.
- Qualified transfer of custody from one custodian to another. Without the owner’s permission, the annuity’s custodian (the insurance company) would transfer the funds to another custodian. But this does not mean that the transaction is tax free. The federal gift tax laws would dictate how the qualifying monies might be transferred. Consult your tax advisor for additional information on the tax laws for the eligible transfers. There should be a note about the charity nature of the transfer.
Because non-qualified annuities are purchased using post-tax monies, the process of transferring them is a little easier. Once your insurance company has received all of the necessary papers, they will handle the transfer for you. You and the recipient of the annuity must both consent to the transfer in order for it to go through. Usually, the signatures need to be witnessed and notarized to be valid.
Gains beyond the original owner’s cost basis on a non-qualified annuity may be subject to taxation at the time of transfer. Because of this, there will be a tax burden to be taken into account. Keep in mind that if you transfer an eligible or non-qualified annuity, you may be subject to estate and gift tax.
As long as the total amount of the gift exceeds your annual gift tax exclusion of $14,000 per person per year, the combined estate and gift tax laws take this into consideration. If you exceed the yearly exclusion limit for gifts to an individual, you will lower your remaining exemption for both estate and gift taxes.
An annuity can be transferred to avoid paying estate taxes after the owner dies, which is a common motivation for doing so. An annuity transfer will remove that issue from your inheritance in the vast majority of circumstances. There is, however, one exception to this rule of thumb: Three-year rule: that’s what it’s called
As long as you don’t die within three years after giving away that annuity, the value of that annuity will be added back into your estate. In light of the fact that many people are selling their annuities in order to minimize their estates, the three-year restriction is counterproductive.
Not just annuities are subject to this three-year requirement. You can apply this rule to any transfer of an asset that isn’t performed for a comparable reward. If the recipient does not pay a reasonable price for the item, it is considered a gift and not a purchase. It’s illegal to sell your full annuity to a relative for $1 in order to avoid transfer regulations. Nonetheless, if you were to sell the annuity altogether to a company that buys annuities, the three-year limit wouldn’t apply and the annuity would be regarded a transfer.
One final point: None of these restrictions eliminate the surrender fees connected with early annuity cancellation. Surrender fees may still apply if you transfer the annuity to another carrier, for example, under the ownership of the new owner. Most of the time, no extra expenses are incurred when a company’s ownership changes internally. Surrender costs are normally applied in a tier-based system over a predetermined time period. It will cost you more money to get out of an annuity contract in the early years than in later years. Over time, the graphic below illustrates how surrender fees would change.
To exit an annuity, you’ll have to cope with expenses and tax consequences. In order to avoid these fees, you may be able to transfer ownership of your vehicle to the same carrier. If a new owner wishes to exchange an annuity for another annuity from a different carrier, surrender charges may be incurred because the new owner does not have the same ownership as the original owner. That’s why we strongly advise speaking with an annuity expert before making any decisions.
An out-of-date, non-qualifying contract can be exchanged for a more recent, qualified contract by the IRS. Your old annuity can be replaced with a new one without you having to worry about paying taxes on any gains if you follow 1035 exchange guidelines.
For those who wish to ensure that their heirs have a secure financial future, we recommend making the annuity beneficiary of the annuity in the event of your death. For this reason, it is possible for an annuitant to increase the payments and generate a lifetime income stream. How the situation unfolds:
- A 1035 exchange allows you to get rid of an underperforming non-qualified annuity by exchanging it for a new one.
- In this case, no minimum distributions are required because the annuity is not qualified for federal tax purposes. Until your demise, you allow the annuity’s value to accumulate.
- An annuity beneficiary can choose to take over ownership after your death and receive payments dependent on the length of their own life.
Through this method, a single annuity can be used to last for many lifetimes “expand” the definition of “provision”. Carriers and asset types each have their own unique stretch provisions. Your insurance company should be able to fulfill your needs before you sign on the dotted line with them “expand” your ambitions.
If the annuity stays with the same insurer after a 1035 exchange, the insurance company may waive any surrender charges incurred as a result of the qualifying transfer. When a 1035 exchange isn’t an option, you may prefer to transfer your annuity to a trust instead of selling it. Pay attention to fees and taxes.
Many people utilize irrevocable trusts to remove assets from their estate while still providing for their dependents. An annuity transfer to a trust may be a little more difficult. So that you can make the trust owner and beneficiary of your annuity, you’ll need to do this. Afterwards, the trust would disburse funds in accordance with the conditions it had established in advance. In addition, the form of trust to which you transfer the annuity has an impact on the tax repercussions.
Because trusts don’t have life expectancies, they cannot be annuitants. A lifetime annuity would have to be paid out if the trust was the annuitant. The life expectancy of the annuitant/insured is dependent on this individual. Annuities tend to pay out more to those who are older. As long as you live, payments will be made to the trust as owner and beneficiary. The trust is able to operate because of these payments.
An irrevocable life insurance trust (ILIT) is comparable in many ways, but there is one important difference. In contrast to an ILIT, which receives the bulk of its funds after your death, an annuity will only pay out while you are still alive and will cease to do so when you die. The trust will get the death benefit if it is also a beneficiary. In the event of your death, the annuity death benefit will be paid directly to your designated beneficiary.
It’s critical to remember that the trust must adhere to the same set of criteria in order to maintain its status as an estate tax shelter. That’s what I’m saying:
- It must be a binding agreement. Once funds are transferred into an irrevocable trust, you no longer have any influence over it.
- You can’t have it set up just for you. To qualify as a tax-avoidance trust, this must be done. A business or even a future interest in heirs who have not yet been born cannot be a beneficiary.
- Ownership involvement is not permitted. In the event you have any control over how the trust is run, the Internal Revenue Service views you as having an ownership stake in it. As a result, you are unable to serve as the trust’s trustee or to pay out benefits to your estate. Your spouse should not serve as a trustee since you and your spouse are one legal entity for tax purposes.
- For the benefit of the recipients, cash must be made available to them. This may seem like an unusual rule, but it’s there to ensure that you don’t mistakenly invalidate your trust. To serve as an effective estate tax shelter, a trust must be established for the benefit of the beneficiaries in the present. Crummey provisions are what you’re looking at here. When the trust receives a payment on behalf of the beneficiary, it will have to notify the beneficiary that they have funds that they are free to transfer from the trust.
Your scenario will dictate whether or not you should use a trust with your annuity. There are advantages and disadvantages to annuities that don’t require the use of an irrevocable trust. As long as the funds are in the trust, you don’t have the same level of control over them as if they were in your own name. Often, combining them can have the most effect.
Taking a taxable distribution and then using the distribution to pay the annual premium on a survivorship life insurance policy, or an individual policy if you are single or have a spouse in bad health, is often a much better choice than all of this. This will give your heirs or a chosen charity a big tax-free death benefit.
It is possible to sidestep serious worries about transferring ownership to leverage the annuity’s income into a tax-free death benefit worth at many times the annuity’s value. With their after-tax annuity proceeds of $80,000 a year, a couple in their seventies and eighties will buy a $5 million survivorship policy, which would be comparable to $10 million with their net worth and tax status.
The annuity’s value and the life insurance payouts are passed on to the heirs if the couple dies before the term of the contract has expired. In order for a couple of that age to accumulate $10 million in a standard risk-bearing investment throughout the course of their lives, they would need to invest $80,000 every year. What a great way to create wealth!
It’s a difficult decision to make, and there are numerous factors to take into account. It’s a decision we take very seriously when someone is thinking about transferring an annuity to another person. It may work in some situations, but in others, a more tax-friendly option is available. Contact a Howard Kaye advisor at 800-DIE-RICH for more information on how to provide heirs with a steady stream of income.
Are charitable gift annuities a good investment?
A charitable gift annuity may be a good option if you want to make a big donation to a charity while also ensuring that you have a steady, predictable income for the rest of your life. Find charities that offer charitable gift annuities if you believe they are the proper vehicle for your planned contribution (and also support causes with which you agree, of course).
Then, consult with your financial advisor to ensure that this is the best course of action in terms of your overall estate and tax planning approach.
Can you gift money from an IRA without paying taxes?
Those over the age of 70 1/2 can support High Plains Public Radio and reap tax advantages by making a simple donation. HPPR is a qualified charity that can receive donations from your Individual Retirement Account (IRA) and avoid paying income taxes on the money. The IRA charitable rollover, or qualified charitable distribution, is one of the most prevalent ways to make a philanthropic donation from an IRA.
Donations to HPPR can be made year after year because this statute does not have an expiration date.
- On the other hand, you don’t have to pay any income tax on the gift. Even if you don’t itemize your deductions, you still profit from the transfer because it doesn’t generate taxable income or a tax deduction.
- Your IRA charity rollover contribution can satisfy all or part of your yearly required minimum distribution if you haven’t yet taken your required minimum payout for the year.
- Your money will be put to use right away, allowing you to observe the positive impact it has on the lives of those in need..
If you want to make an IRA donation to the Kanza Society, Inc. (HPPR’s legal entity; Federal Tax ID#: 48-0859735), you must write a check from your IRA account or have your IRA administrator make a payment to the Kanza Society.
You should consult your IRA plan administrator or tax expert to see if an IRA donation is right for you, as HPPR cannot provide financial or tax advice for your specific situation.
Plan to contact your IRA administrator as soon as possible in case your administrator places a deadline on your request for a charity rollover distribution for the current calendar year.
We appreciate your consideration of making this donation to HPPR.
You can help safeguard the future of public radio service in your community and across the High Plains if you plan your finances wisely today.
My grandmother left me an IRA, which I plan to contribute to.
Does it qualify for a charity IRA rollover?
In this case, you can inherit the IRA from a person who is at least 70-1/2 years old, if they are still alive.
Is it legal to use my gift as my minimum distribution?
Yes, without a doubt. All or a portion of your statutory minimum distribution can be met by making a charitable rollover gift from your Individual Retirement Account (IRA).
More than $100,000 is what my spouse and I are hoping to contribute. What’s the best way to go about it? For those who have a 701/2-year-old spouse who also has an IRA, you may be able to deduct up to $100,000 from their account.
In a few months, I’ll be 70-1/2 years old. What timeframe are you working on? No. You must be at least 70-1/2 by the time you make the gift, according to the law.
The many retirement accounts I have include pensions and Individual Retirement Accounts. Which retirement account should I choose? Yes. IRAs are the only vehicles through which you can make a direct gift to a recognized charity. There are some scenarios in which an individual may be able to transfer assets from a pension or profit sharing, 401(k), or 403(b) plan straight to High Plains Public Radio through an Individual Retirement Account (IRA). Contact your plan administrator to find out if you are eligible for a rollover to an IRA.
Do I have to give up all of my IRA in order to reap the tax advantages?
No. This clause allows you to gift any amount, as long as it is less than $100,000 this year.
I’ve already designated High Plains Public Radio as the beneficiary of my Individual Retirement Account. What are the advantages of making a gift now rather than later in life? You may see your philanthropic dollars at work this year by making a gift of up to $100,000 from your IRA. To begin your legacy now is to give yourself a sense of accomplishment while seeing your charity come to life.
Can I donate IRA to charity?
Individual retirement accounts can be used to make charitable donations. Traditional Individual Retirement Accounts (IRAs) allow you to avoid paying taxes on your RMDs by giving them to charity.
Can I make a qualified charitable distribution to a donor-advised fund?
Donations that are tax-deductible can only be contributed to specific types of non-profits that are listed as such in the IRS’s tax code.
Donor-advised funds, private foundations, and supporting organizations cannot now get QCDs, despite the fact that they are classified as charities. Prior to making a donation, donors should verify that the organization is qualified to accept QCDs before making a donation.
A donor can make a qualified charitable donation that exceeds the individual’s statutory minimum distribution for a particular year; however, the extra distribution cannot be carried over—i.e., used to meet the minimum distributions for future years. A significant donation can be given in a single year and the tax benefits can be carried over in other schemes, such as a donation of cash or appreciated securities. It also differs from donor-advised funds or foundations, which can also allow you to front-load donating in a high-income year and use those monies to benefit charitable organizations in the future.
Donors, on the other hand, are barred from receiving any financial reward for donating to a qualifying charity. In other words, you can’t use a QCD to make a purchase at a charity auction or for charity golf tournament tickets.
Donors who make charitable distributions should contact with a tax professional to learn about the implications of their actions on their state’s tax obligations, because the regulations governing qualified charitable distributions (QCDs) differ by state.
Another drawback of QCDs is that they can’t be used to support every sort of charity; certain charities don’t accept them, as stated above.
