Looking for a way to make a significant gift to CFCA while maintaining a source of lifetime income? Consider establishing a charitable gift annuity through CFCA.
A charitable gift annuity is a simple contract between you and CFCA. In exchange for donated assets, such as cash or marketable securities, you receive a tax deduction and annual income payments for your lifetime and/or that of a spouse or designated beneficiary.
A portion of each income payment made to you by CFCA is considered a partial return of your gift and is non-taxable.
What other sponsors say:
“After retiring in December 2010, we arranged a charitable gift annuity with CFCA, which allowed us to see the fruits of our donation during our lifetimes and provide an insured stream of income as well as a tax deduction.”
ó John and Christine, charitable gift annuity donors
How charitable gift annuities work:
- Jim and Judy, ages 77 and 75, transfer $20,000 to CFCA to fund a charitable gift annuity contract.
- Jim and Judy receive a charitable deduction of $7,256 applicable to the tax year they make their gift.
- CFCA pays Jim and Judy $1,020 annually for as long as either of them are living. Of their annual payments, $812 is tax-free and $208 is ordinary income for their life expectancy.
- When Jim and Judy both die, 100 percent of the unused portion of their gift is designated for use by CFCA.
Charitable gift annuities provide significant lifetime income and tax savings. However, once the gift has been received by CFCA, it is irrevocable and cannot be returned.
It is recommended that the decision to fund a charitable gift annuity contract be discussed in advance with a financial adviser or attorney.