Are you watching interest earnings continue to diminish as interest rates drop? Are you worried that, when the time comes, you won't have anything left to give to your church or favorite charity? Then, consider establishing a charitable gift annuity. This type of planned giving is a win-win proposition that addresses those goals and more!
You, as the donor, receive a fixed payment for the rest of your life, a charitable tax deduction, portion of the annual payment tax-free (until reaching one's projected life expectancy), and the ability to designate 90% of the remaining annuity principal to your church or other church-related ministry as a charitable gift.
Examples of current single-life rates established on December 29, 2008, and still in effect:
| Age | Rate |
| 50 | 4.4 |
| 55 | 4.8 |
| 60 | 5.0 |
| 65 | 5.3 |
| 70 | 5.7 |
| 75 | 6.3 |
| 80 | 7.1 |
| 85 | 8.1 |
| 90+ | 9.5 |
WHAT IS A CHARITABLE GIFT ANNUITY?
A Charitable Gift Annuity, or CGA for short, is a way to make a gift to your favorite charity, and still receive an annuity payment for yourself or others. It is a contract under which a charity, in return for a transfer of cash or other property, agrees to pay a fixed sum of money over one or two lives. The person who contributes an asset for the annuity is called the "donor", and the person who receives payments is called the "annuitant" or "beneficiary." Usually, the annuitant is also the donor, but this is not always true.
WHAT WILL MY ANNUITY RATE BE?
The Foundation offers CGA rates based on the rates suggested by the American Council on Gift Annuities. Rates are based on the age of the annuitant(s) at the time the Charitable Gift Annuity is established. For current rates, please see the chart to the right.
WILL MY ANNUITY RATE CHANGE?
Payments from a charitable gift annuity are fixed from the outset. They will neither increase nor decrease, regardless of what happens to interest rates or the stock market. A charity is contractually obligated to make the payments, even if it has to dip into its general funds to do so. In the case of a joint or two-life charitable gift annuity, the annuity payments will remain the same for the second annuitant after the first annuitant dies.
WHAT ARE THE BENEFITS OF HAVING A CGA?
Gift annuity donors may want to increase their cash flow, seek the security of guaranteed, fixed dollar-amount payments, and the security of knowing a gift will be made to their church or other ministries upon their death no matter what happens to the remainder of their estate.
HOW CAN I FIND OUT MORE INFORMATION ABOUT A CGA?
Call Jean Nicholas or Bill Helwig at the Foundation at 1-888-903-9863. We will prepare an individualized computer illustration, at no obligation to you. Call us today!