Why the Interest in Charitable Gift Annuities?
By Julie Dais, Director of Gift Planning
A Charitable Gift Annuity (CGA) provides a lifetime income stream, tax benefits and the opportunity to support charitable causes. This quarter, OCCF has received numerous calls from donors and advisors to learn more about how this giving tool can benefit both the donor and their charitable interests.
OCCF’s Megan Davis meets with Legacy Succession’s Madison Chaney and Colby Haggard
Benefits of a CGA
- Income: Recent increases in rates have made CGAs more attractive. Your clients may like receiving a fixed, stable income for life with flexibility for one- or two-life spousal payments.
- Tax Benefits: Your clients can receive a partial tax deduction when establishing a CGA, and ongoing payments from their CGA may generate tax-free income.
- Capital Gains Tax: Your clients who fund their CGA with appreciated securities can avoid upfront capital gains tax.
- Deferred Payments: Clients seeking retirement planning tools may be interested in deferring payments until later.
- Philanthropy: Your clients can use their CGA to support a nonprofit endowment, scholarship or other permanent funds at OCCF, building sustainability for the causes and fulfilling your clients’ charitable goals.
CGA rates have increased over the last year, making them a great tool to balance charitable and financial goals for savvy donors.
In addition to the benefits listed above, donors like CGAs because they are simple contracts with consistent quarterly income payments directly into their bank accounts.
Would a CGA benefit one of your clients? Check out the OCCF Gift Planning Calculator to run a few scenarios, and give us a call to learn more.
Our expert team serves as a charitable giving resource to enhance the knowledgeable service you give your clients. We’ll help you structure a giving plan that maximizes tax advantages while achieving your clients’ charitable and financial goals. This post is provided for informational purposes only. It is not intended as legal, accounting or financial planning advice.