Charitable Gift Annuities and Deferred Gift Annuities
What are they?
Charitable Gift Annuities
A charitable gift annuity (CGA) is a contract between a donor and the Foundation. The donor transfers cash or securities to the Foundation. In exchange, the Foundation agrees to pay to the named beneficiaries (annuitants) a guaranteed annuity amount for life. The annuity rate is based on the age of the annuitant; the older you are, the higher the rate. (You may also achieve a higher tax deduction by choosing a lower rate.) If you are at least 65 years old, income payments can begin immediately. If you are younger, a deferred charitable gift annuity may be an effective way to supplement your future retirement income. Payments will not begin until age 65, but the rates for a deferred CGA will be higher than those for an immediate annuity.
At the death of the last annuitant, assets will be used by the Foundation to create or add to an endowed fund as you instructed.
What are the benefits?
- Receive a guaranteed income stream backed by the assets of the Foundation
- Receive a charitable income tax deduction
- Reduce capital gains
- Reduce estate tax liability
- Receive a portion of each payment free of income tax
How to establish
Please contact us for a detailed illustration of the annuity rate, tax treatment, and benefits.
Minimum contribution
$50,000
Contact us
For more information, contact Carol Golden, executive vice president & chief development officer, (401) 427-4027, or any development department member.
Download a one-page, easy-to-print fact sheet about charitable gift annuities.
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