The Charitable Gift Annuity
A way to support Gospel for Asia . . . and receive regular, fixed annuity payments for life.
A Charitable Gift Annuity (CGA) is part charitable gift and part annuity. Funded by your contribution of money or stock shares, the CGA provides fixed annuity payments to you (and/or someone else you designate) for life, and a gift to GFA, too. A portion of your contribution is tax-deductible in the year the CGA is funded, and a portion of the annuity payments are tax-free.
What are the benefits of a CGA?
- Immediate Tax Deductions. You generally qualify for an immediate tax deduction for a portion of the contribution that funds your CGA, and avoid some capital gain tax when your CGA is funded with appreciated stock or mutual fund shares.
- Removes Assets from Your Taxable Estate. The amount used to fund a CGA is no longer part of your taxable estate, which could help you reduce or avoid estate taxes.
- Fixed Income for Life. A CGA produces fixed payments for life with rates generally much higher than CDs that don't fluctuate with the stock market. A portion of the income is often tax-free.
- Easy to set up. Unlike a trust, you may establish a CGA without a lawyer, although it is always a good idea to consult with your professional advisor(s) first.
- Impact. Many people in Asia will experience the love and grace of Jesus through the gift portion of your CGA.
How much money is required to set up a CGA through Gospel for Asia's Harvest Foundation?
The minimum amount needed to fund a CGA through the Harvest Foundation is $10,000.
What types of gifts are accepted for CGAs?
CGAs can be funded with cash or publicly-traded securities.
When will annuity payments start?
You may choose to receive payments immediately or defer them to a future date, possibly to a time when additional income will be needed.
How old must I be to start receiving CGA payments?
The minimum age to start receiving payments is 50.
How often do I receive payments?
You may choose to receive your annuity payments quarterly or annually, via check or electronic funds transfer.
What types of CGAs does the Harvest Foundation offer?
Harvest Foundation CGAs can be for one or two lives with payments starting immediately or deferred until a later year.
How much will I receive?
We use rates recommended by the American Council on Gift Annuities. Payout rates increase with age and with the length of deferral. The payment amount depends on four factors:
- The amount of your gift
- Your age at the time of gift
- When the payments begin
- Whether the CGA is a one- or two-life annuity
Based on these factors, the payout rate is set at the time of your gift and the annuity payment received will be the same for the remainder of your life and another life if you choose a two-life annuity.
How much will go to Gospel for Asia?
The recommended annuity rates for a CGA are computed using the assumption that on average approximately 50 percent of the initial gift amount will remain for charity when the annuitant dies (if the annuitant lives to the average life expectancy). If the CGA is reinsured, the 50 percent assumed remainder value (future value) is discounted back to today's dollars (present value) and made available for GFA to use immediately.
Is a CGA with the Harvest Foundation safe?
Gospel for Asia Harvest Foundation Charitable Gift Annuities are administered by the National Christian Foundation (NCF). NCF issues CGAs on our behalf. NCF's commitment to pay your annuity is a legally binding contract, and since 1998, when their first CGA was issued, they have never missed an annuity payment. They have an extremely careful and prudent investment policy that provides maximum security for all of the CGAs they issue, and CGAs are typically reinsured for even greater security.
A Charitable Gift Annuity Example
Mark and Katherine were both 75 years old, retired, and troubled by the drop in their income as a result of lower interest rates on their fixed-income investments (CDs, bonds and money market funds). Still, they wanted to support GFA through financial giving and planned to do so through their will.
When they learned about a CGA through Gospel for Asia's Harvest Foundation, they funded a CGA with a $25,000 check. They received an immediate tax deduction for a portion of the funding amount, and based on their age and life expectancy, they received fixed payments of $1,275 per year for the rest of their lives (5.1% of $25,000). This was a higher percentage than they were earning on their CDs and money market funds. Plus, about 73 percent of each payment was tax-free. Because the CGA was reinsured, GFA received an immediate donation of $3,792 to further the work in Asia, which Mark and Katherine designated to use for printing Bibles.
Would you like to make a large impact for God's Kingdom? Would you like to receive regular, fixed payments for the rest of your life?
Would you like payments to go to your spouse, parents, children or a friend?
Would you like to remove assets from your taxable estate?
Are your CDs and money market returns lower than you would like?
Are you concerned about the fluctuating stock market?
If the answer to any of these questions is YES, then a Charitable Gift Annuity with GFA's Harvest Foundation may be right for you.
Questions? Use this contact form, email firstname.lastname@example.org or call us at 1-800-946-2742.
All gifts are subject to Gospel for Asia's Gift Acceptance Policy.
DISCLAIMER: This information is designed to provide information and illustration of the subject matters covered. It is not intended, nor should it be used as legal, accounting or other professional advice. It is always a good idea to seek legal and tax advice from your professional advisor(s).