CHARITABLE GIFT ANNUITIES
Charitable gift annuities (CGAs) are one of the simplest and most popular forms of life income gifts. It involves a simple agreement whereby the charity accepts a gift of cash, securities, or property and agrees to pay a specified, fixed dollar amount to the annuitant (the donor or another beneficiary).
The fixed amount is set by the American Council of Gift Annuities and is based on the annuitant's age. Because the gift is irrevocable, the charity maintains control of the gift and becomes responsible for paying income for the lifetime of each annuitant.
A Charitable Gift Annuity is a contract under which a charity, in return for a transfer of cash, marketable securities or other assets, agrees to pay a fixed amount of money to one or two individuals for their lifetime
Benefits
· Steady, guaranteed lifetime payments, backed by the assets of the Charity
· Charitable income tax deduction
· Avoidance of capital gains tax
· Savings on gift and estate taxes
· Future support for the charity
Typical Guidelines
· Minimum gift of $25,000
· Payments can begin at age 40 or later
· Can be funded with cash, securities, or other property
Example of Gift Annuity Rates (Will vary depending upon a number of factors)
Income rates are based on your age or the age of your beneficiary when quarterly payments begin.
|
Donor makes a gift today at current age(s) |
annuity begins immediately at this rate: |
5 years before annuity begins at this rate: |
10 years before annuity begins at this rate: |
|
50 |
5.0% |
6.7% |
9.2% |
|
50/50 |
4.3% |
5.6% |
7.4% |
|
60 |
5.8% |
7.5% |
10.1% |
|
60/60 |
5.1% |
7.0% |
9.4% |
|
70 |
6.2% |
8.8% |
13.0% |
|
70/70 |
5.8% |
7.9% |
12.2% |
|
80 |
8.0% |
11.5% |
14.7% |
|
80/80 |
7.5% |
9.6% |
12.2% |