Example 1: Immediate CGADeferred Charitable Gift Annuity
Doug and Jane meet with Angela, a gift planner from State School. Doug and Jane are seeking to supplement their retirement income. Angela encourages them to consider funding a CGA with State School as part of their retirement plan. They wish to make a gift of highly appreciated publicly traded stock in the amount of $250,000, which has a cost basis of $15,000. Doug is 77 and Jane is 75. Based on the ACGA suggested rates, they would be entitled to a 5.1% annuity payout. Their gift would allow them to claim a charitable income tax deduction of $106,290. Doug and Jane love the idea of supplementing their income in their retirement years. They like the charitable income tax deduction and the legacy gift to charity. They are also pleased with the annual fixed annuity payments of $12,750.
Example 2: Deferred CGAFlexible Deferred Charitable Gift Annuity
Brandon and Amy meet with their favorite foundation to find out how they could support its mission. They hope to supplement their income later in life. Brandon and Amy also desire a charitable tax deduction while they are still in their income earning years. They wish to use cash to fund the annuity and are willing to gift $300,000. Karen, the gift officer, suggests that Brandon and Amy consider a deferred payment CGA, as they are 55 and 50, respectively. Karen explains that if they are willing to defer payouts from the CGA for 15 years, they can set up an annuity with a 6.9 % payout rate. This will provide payments of $20,700 annually. They will also be entitled to claim a charitable income tax deduction this year of $99,593. This gift annuity proposal meets Brandon and Amy's goals. They are more than willing to wait until retirement to begin receiving payments from the annuity. Brandon and Amy are overjoyed with the large charitable income tax deduction in the year of the gift.