Charitable Gift Annuity (CGA)
A Charitable Gift Annuity (CGA) is an option when a guaranteed income is desired. A gift of cash or securities is transferred to a third party Trust Company in exchange for a contractual life income paid monthly or quarterly. The income is guaranteed by the issuing charity. A portion of the gift is invested and used to provide income for life, and the remaining portion qualifies as a present-interest gift to the NISS foundation. Part of the annuity income may be received tax free. Any capital gains taxes due on the asset that was exchanged for the annuity are paid over the annuitant's life expectancy.
The typical donor:
- Needs guaranteed income for life.
- Wants a fixed income based on the original value of assets transferred.
- Desires to make a "present gift" for estate planning purposes.
- Does not plan to make additional gifts to the annuity.
- Is between the ages of 55 and 80.
Gifts features and benefits:
- Income for life (fixed payments)
- Possibility of one or two income beneficiaries
- Guaranteed contractual agreement
- Issued and administrated by third party Trust Company
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