How does a CGA work?
First, an individual or couple make a gift of cash or appreciated securities to a charity. A contract is established giving the donors immediate annuity payments at rates based on their ages. The donors receive a lifelong guaranteed stream of tax-reduced income regardless of market conditions, plus an immediate tax deduction. Upon the donors’ death, the remainder goes to the charity: in this case the Woodmere Art Museum Endowment Fund of The Philadelphia Foundation. In addition, the donors’ estate may enjoy reduced probate costs and estate taxes. Rasmus enthusiastically encourages people to consider the benefits of CGAs. “The tax deductions and tax-free income are phenomenal,” he says. “In my case, a $10,000 gift gets me a $3,700 deduction.” And then there’s the income: Rasmus receives 75 direct deposits a year from all the charities with which he has established CGAs. As he says, “I don’t have to sell something in order to live.” To learn more about establishing a Charitable Gift Annu
Related Questions
- I am a CGA member interested in completing one or two courses only for professional development purposes. Can I enroll in SAIT degree courses?
- Do any Canadian academic institutions offer special undergraduate or graduate degrees for students in the CGA program?
- I know the CGA program is delivered online. Where can I find out about computer or software requirements?
