How it Works

 A Charitable Gift Annuity (“C.G.A.”) is a contract between you and a non-profit agency. To the agency you give a sum of money or other asset. In return it guarantees you a specific dollar income annually for the rest of your life.

 The exact amount of your annual income from the Charitable Gift Annuity is dependent on several factors 1) your age at the time of the contribution, 2) the size of the contribution, 3) if persons other than you are to receive income.

 The charity accepts your contribution, invests it, and pays you the agreed-upon amount annually for the life of the contract. When the beneficiary dies, the charitable agency receives the remainder of the original investment and any growth, which may have occurred from their investment of it.

 The size of your contribution is up to you. Many agencies can receive minimums of $5,000, but that must be verified. Of course, they encourage you to be as generous as you can. Payments are made to you quarterly or annually as you have chosen. At the end of each year you will be provided with appropriate tax information.
 
 You may buy more charitable gift annuities in the future, and the lifetime payout rates will be determined at the time of each new contribution.

What to Do

Contact the charity of your choice and have their representative visit with you.
Have them prepare a “no-obligation” proposal, so you may study the contract. Note the tax advantages to you; they may be important.
Show it to your financial and legal advisors and be sure you understand all the provisions.  When satisfied, sign the contract and make your contribution.   

Benefits to You

 You receive a guaranteed lifetime annual income of a specific dollar amount.
 You can make a deferred gift to your favorite charity.
 You receive some tax deduction in the year of your contribution.
 Of your annual income, a portion is tax-free.
 You see how the plan works before you make a commitment.
 You do not have to pay large professional fees to set up a Charitable Gift Annuity.
 You may start with a small contribution; later you may make more contributions.