A charitable gift annuity, or CGA for short, allows an individual or couple to make a gift to ministry while receiving an income tax deduction and a guaranteed fixed payment for life. After the individual or couple’s death, the remainder of the gift is passed on to the ministry or ministries they’ve selected.
CGAs are an excellent planned giving option for anyone of retirement age who has both the desire to give charitably and money in the bank earning little interest. The older you are when you create a CGA, the higher your annual payout. Rates also differ between individuals and couples.
For example, Mr. and Mrs. Smith are both 70 years old and they decided to give a $25,000 charitable gift annuity to their church. They qualify for 5 percent* yield on their annuity, meaning they would receive a $1,250 annual payment from the annuity, plus an income tax deduction of about $8,000. This $1,250 annual payment will continue for the rest of the Smiths’ lives, even if they outlive their $25,000 gift.
Gift annuities provide both a vehicle to fund the missions that matter most, plus the security of a dependable annual income.
*The American Council on Gift Annuities publishes rates based upon donor age and life expectancy.
Lakie Gillespie knew she didn’t want to be anyone’s burden. She planned to make sure her affairs were in order and desired to be a good steward of the resources God had given her. So, shortly before her 80th birthday, Gillespie sold her house and used the proceeds to create a charitable gift annuity (CGA) through the Foundation benefitting the Oklahoma State Missions Offering. Gillespie chose to give through a CGA because she wants to make an impact with the Gospel across Oklahoma and values the added security of an annual income stream.
“I wanted to put the money where it was most needed," Gillespie explains. "I know I can’t do it all, but I hope this gift will help support someone with the talent of teaching people about Jesus.”