A charitable gift annuity (CGA) provides fixed payments for life in exchange for a gift of cash or securities to charity_name. Payments are backed by the general resources of our organization.
A charitable gift annuity could be right for you if:
- You want to maintain or increase your cash flow.
- You want the security of fixed, dependable payments for life.
- You want to save income taxes or capital gains taxes.
- You would like income that is partially tax-free.
- You want to make a generous gift to charity_nickname.
- You are considering a gift amount of $10,000 or more.
- You are at least 65 years of age.
Example
Linda Hogan is a 71 year-old widow. She would like to make a significant gift to charity_name, but she is dependent on the income produced by her investments. One of these investments is stock in XYZ Widget Corporation that she and her late husband purchased many years ago for $3,000.
Her stock is now worth $10,000 but provides little income - about $126 after tax. Linda is reluctant to sell her XYZ Widget stock to reinvest in higher yielding assets because she will have to pay $1,400 in capital gains tax. This would leave her with just $8,600 to reinvest.
Linda is pleased to learn that she can make a significant gift to charity_name and increase her cash flow by giving her XYZ Widget stock to charity_nickname in exchange for a gift annuity. She can also save substantial income taxes plus avoid and defer capital gains taxes, and will receive an income tax deduction that may provide additional tax savings at the same time.
| Tax result | Cash flow before tax | Cash flow after tax (37% tax rate) | |
|---|---|---|---|
| Linda keeps her stock | None | $200 | $126 |
| Linda sells and reinvests for 4.0% yield | Owes $1,400 capital gains tax | $344 | $217 |
| Linda funds a 6.4% gift annuity | $3,934* income tax deduction Avoid tax on $2,754* of capital gain | $640 | $496 |
*Deduction amount and capital gains tax avoided may vary depending on the timing of the gift.
How Your Gift Helps
NEED COPY FOR THIS AREA
and copy here; and copy here; and copy here;