Charitable Gift Annuity
A Forever Gift With Income Today
A charitable gift annuity (CGA) is a contract between you and a charity. You make an irrevocable gift to the charity, and in return, the charity makes regular fixed payments to you. Upon your death, the charity receives the remaining balance of the gift.
A CGA enables you to plan your legacy today without worrying you’ll outlive your resources tomorrow.
Furthermore, a CGA established with the Catholic Community Foundation (CCF) results in a lasting legacy gift with the remaining balance either establishing or contributing to an endowment fund.
How a Charitable Gift Annuity Works
You make an establishing gift and receive an immediate partial tax deduction. At CCF, the minimum gift is $10,000. At the time the gift is made and (01) the contract is created, you will select the beneficiary of the gift. The beneficiary cannot be changed after the agreement is signed.
Then, you (02) receive regular fixed income for the remainder of your life (or until the principal runs out). The payment is based on a fixed rate, established at the time the contract is created. The rate is dependent on yours and your spouse’s ages. You will be required to pay income taxes on the payments.
(03) Upon your passing, the beneficiary receives the remainder of the balance. And, because you removed an asset from your estate to establish the annuity, you’ll likely reduce your estate tax liability.