What are Charitable Gift Annuities?
Charitable Gift Annuities (CGAs), like charitable remainder trusts, are life income gifts; you transfer assets now, receiving a charitable deduction for a portion of the transfer, and you or a beneficiary receives income for the rest of your life or for a fixed period of time. Both the charitable organization and you can benefit from life income gifts. With a CGA, you make a gift to the charitable organization, and the organization agrees to pay you a fixed amount of income every year for the rest of your life. Another beneficiary can also receive income from your CGA. In addition, you have the option to defer receiving income for a period of time. The income received each year is equal to a fixed percentage of the original gift. This percentage is dependent upon the age of the beneficiary (or beneficiaries) when the CGA begins to pay out income. Upon the passing of the last surviving beneficiary, the charitable organization will use any remaining annuity assets to support the program
