Deferred Charitable Gift Annuity (DCGA)
A Deferred Charitable Gift Annuity (DCGA) is often the gift of choice when a future 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 at least annually. The income is guaranteed by the issuing charity (i.e. The NISS Foundation). 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 future guaranteed income for life.
- Wishes to have a fixed income based on the original value of assets transferred.
- Desires to make a "present gift."
- Does not plan to make additional gifts to the annuity.
- Is between the ages of 40 and 60.
Gifts features and benefits:
- Income for life (fixed payments)
- Donor can select the starting date of the income based on life situation
- Possibility of one or two income beneficiaries
- Guaranteed contractual agreement
- Issued and administrated by a third party Trust Company
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