What is a Charitable Gift Annuity?
A Charitable Gift Annuity (CGA) is a contract between an individual or a couple and a qualified charity. The individual or couple makes a gift to the charity in exchange for a lifelong income stream that begins within one year. Upon completion of the annuity,
A number of payout options are available. An individual may choose to have a fixed income for themselves or another person for his or her natural life. Or a couple may choose to have a fixed income paid until the last spouse passes away.
How does it benefit Stewards Foundation?
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.
How much will my income be?
The annuity 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.
Will my rate of return change?
Once you take out a CGA, your payment amount is guaranteed for life, 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.
What are the tax advantages?
There are two 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 rate of return.
- Investments in a CGA generally are not included in your estate for estate and inheritance tax purposes.
What assets can be used?
A CGA may be purchased 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 purchase 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.