Charitable Gift Annuities
Make a Planned Gift to AJC and Enjoy Fixed Income for Life
A charitable gift annuity (CGA) provides a way to make a planned gift to AJC during your lifetime and also receive income and tax benefits. Moreover, you will gain the satisfaction and fulfillment that comes with providing a meaningful legacy to AJC.
A charitable gift annuity is established through an agreement between the donor and AJC. You can fund a CGA with a gift of cash or with marketable securities, and, in return, you and/or another person you designate as life income beneficiary(ies) will receive guaranteed fixed income for life at a generous rate of return. You can be both the donor and the life income beneficiary.
The rate of annuity that the beneficiary receives is based on the age of the person who will receive the income. You may wish to designate your spouse to receive annuity payments to provide him or her with an additional source of secure retirement income. A younger donor may designate a parent or older relative to receive the annuity income. However, please check with your financial advisor, as gift-tax regulations may apply if the life income beneficiary is a person other than your spouse.
For information about annuity rates and personalized illustrations, please contact our Director of Planned Giving, Rachel A. Gross.
The Advantages of Establishing a CGA with AJC
Funding a CGA with long-term appreciated securities provides you with the additional benefit of eliminating the capital gains tax on the appreciation. You may also consider funding the charitable gift annuity with stock that yields little or no dividends to maximize your income benefits.
You will also be eligible for a charitable income tax deduction for a portion of the gift in the year the gift is made, which can be carried forward for five years in accordance with accounting principles.
If you fund the CGA with cash, you can apply the charitable tax deduction against 50% of your adjusted gross income, and if you use securities to fund the trust, you can apply the charitable tax deduction against 30% of your adjusted gross income.
Please consult your tax advisor about the use of this charitable tax deduction. The amount of your deduction is based on multiple factors, such as the age(s) of the designated income beneficiaries and actuarial tables, the rate of the annuity income payments you and/or your designated beneficiary receive, and the Internal Revenue Service (IRS) federal interest rate for the month in which the gift is made.
* Charitable gift annuities are issued by AJC to our donors based on their state of legal residence.