Charitable Gift Annuity
Many of us would like to make a significant charitable gift, but at the same time aren’t sure how much of our assets we will need in the future. As a result, we hesitate making that significant gift that would bring us so much joy.
There is a way to make a significant gift and receive income in return. It’s called a charitable gift annuity.
At the Saint Paul & Minnesota Foundation, we understand your desire to balance charitable giving with your income needs. That’s why we’ve offered charitable gift annuities (CGA) to our donors for decades.
Here’s How a Gift Annuity Works
Financial Benefits of a Charitable Gift Annuity
- A CGA provides a steady stream of lifetime income for you and/or a loved one.
- Income can begin right away or deferred to a future date.
- Upon creating a CGA, you may be entitled to a charitable income tax deduction.
- At the end of the income recipient’s lifetime, the remaining assets are used for your favorite nonprofits.
- CGAs can be funded with cash, stock, cryptocurrency, Qualified Charitable Distribution from an IRA or mutual funds. These gifts often avoid immediate recognition of capital gain.
Get Started Today
- Talk with a Foundation Gift Planner about your charitable goals.
- Our experienced staff will create a customized gift annuity calculation to show how much income you would receive and any potential income tax deduction.
- Easily establish your own CGA with a gift of cash, stock, virtual currency, Qualified Charitable Distribution from an IRA or mutual funds.
- You and/or your loved one receives a steady income stream for life.
- A significant gift is established for your favorite nonprofits.
How Miriam and Joshua Used a CGA to Create Retirement Income and Support Nonprofits
Miriam and Joshua were preparing to retire and wondered if they had saved enough. They discussed with their advisors how to use their stock portfolio in retirement. Their advisors knew that Miriam and Joshua supported several nonprofits, and suggested a plan that would allow the couple to donate stock to nonprofits without capital gains tax, receive a lifetime income stream and support their favorite nonprofits.
Miriam and Joshua donated stock directly from their investment account to the Saint Paul & Minnesota Foundation to create a charitable gift annuity (CGA), which avoided capital gains taxes. They received an immediate charitable income tax deduction as well as a fixed, annual income stream for both of their lifetimes. The tax deduction helped to offset the capital gains on stock they sold themselves.
After they pass away, the remaining assets in their CGA will be transferred to the Miriam and Joshua Eisenberg Charitable Fund at the Saint Paul & Minnesota Foundation, where it will support their favorite causes long into the future.