Some charitable clients may wish to structure a gift to charity so that the client retains a lifetime income stream. Keep in mind that a charitable gift annuity (CGA) could be an attractive option for these clients. Plus, if the client is 70 ½ or older, the client can take advantage of the one-time Legacy IRA opportunity to give $53,000 to a qualified charity such as an unrestricted or Field of Interest Fund at the Community Foundation.

A CGA, like any other annuity, is a contract. Your client agrees to make an irrevocable transfer of cash or assets to a charitable organization. In return, the charitable organization agrees to pay the client (or a designated beneficiary, i.e. spouse) a fixed payment for life. Your client is eligible for an immediate income tax deduction for the present value of the future amount passing to charity.

The team at CFAAC can help you stay updated on the latest CGA rate changes (including the rates that took effect at the beginning of 2024). We’ll work with you to evaluate whether and when a CGA is a good plan for your client. Feel free to reach out at info@cfaac.org or 410.480.1102.