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
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%
|