A Charitable Gift Annuity (CGA) is a contract between a donor and a Qualified charity. The donor makes a gift to the charity in exchange for a lifelong income stream. Payments stop when the donor(s) go home to be with the Lord.
A donor may choose to have payments made to themselves or another person for his or her natural life. Or a couple may choose to have payments made until the last spouse passes away.
CGAs issued by Stewards Foundation are as secure as Stewards Foundation. The entire amount contributed is held in a separate account for investment and annuity payments. Upon the beneficiary’s death, the remaining balance will go to Stewards Foundation.
CGA’s income depends on two variables:
- The age of the beneficiary
- Whether the annuity is based on one life (an individual) or two lives (a couple)
The older the annuitant when payments begin, the greater the payment, and the payout will be greater for one life than it will be for two lives. The income stream is guaranteed for the life of the beneficiary.
Once you take out a CGA, your payment amount is guaranteed for life by Stewards Foundation, regardless of what happens to the economy or stock market. Although rates may change for new CGAs, the rate for any established CGA will remain the same throughout the life of the contract.
There are three key tax advantages that come with establishing a CGA:
- A portion of each payment you receive during your life expectancy is tax exempt, resulting in a higher effective after-tax rate of return.
- Investments in a CGA generally are not included in your estate for estate and inheritance tax purposes.
- An immediate income tax deduction will be received based on the difference between the amount contributed and the present value of the payments that will be received over the donor’s lifetime.
A CGA may be established with cash or marketable securities, such as stock. Additionally, although subject to the gift acceptance policies of the issuing charity and state laws, other assets that are readily marketable may also be used to create a CGA.
Call us to discuss how a Charitable Gift Annuity will benefit you and assist Stewards Foundation in our service to assemblies of the Lord’s people and their commended workers.