Charitable Gift Annuity
A Charitable Gift Annuity (CGA) is a contract between a donor and a charity. In exchange for a gift of cash or property, we agree to make fixed payments to you for the remainder of your life. A significant portion of this initial gift is tax-deductible the year in which it is given. In addition, if you fund any gifts by transferring (never selling) an appreciated asset like stock, you also lower or eliminate your capital gains taxes.
DURATION You give cash or appreciated property to us. We make fixed payments for the lifetime(s) of one or two individuals.
PAYOUT RATE Payments are based on the age of the annuitant(s). We use rates recommended by the American Council on Gift Annuities (ACGA).
TAXATION OF PAYMENTS A portion of most gift annuity payments is tax free. The remainder of the income is taxed at ordinary rates and possibly capital gains rates.
TIMING A gift annuity contract can begin making payments immediately (current gift annuity) or defer payments for at least one year (deferred gift annuity).
