Get a lifetime cashflow while benefitting the charity you choose!
A Charitable Gift Annuity can be designed to begin paying a cash flow stream to the donor beginning
immediately, at a future fixed date, or at a flexible future date. CGA's also provide the donor with
the opportunity to leverage "after-tax" income."
How does it work?
A Charitable Gift Annuity is a contract between a charity and a donor that, in exchange for an irrevocable transfer of assets to the charity, the charity will pay a fixed sum to the donor and/or beneficiaries designated by the donor for the lifetime(s) of up to two beneficiaries.
A Charitable Gift Annuity offers a regular fixed income to the donor, while benefitting the charity of their choice during their lifetime. A CGA can be designed to begin paying an income stream to the donor beginning immediately, at a fixed future date, or at a flexible future date. Charitable Gift Annuities also provide the donor with the opportunity to leverage "after tax" income.
Who does it work for?
A Charitable Gift Annuity can be a great solution for donors who have appreciated assets they would like to move outside of their taxable holdings. Donors looking for a steady income stream for themselves or their heirs can also benefit, and may wish to defer the beginning of the income stream to a later date.
The following are a few of the many benefits of a CGA:
- Reduced Tax Costs: Contributing assets to a CGA qualifies the donor for a charitable tax deduction.
- Simplicity in Operation: Charitable Gift Annuities are run by organizations and the fixed income is typically backed by the assets in the fund.
- Charitable Impact and Legacy: Donors selecting a CGA receive a dependable, fixed income while leaving a substantial gift to charity.