Your One-Click Solution for Charitable gift annuities
What are your annuity rates?
CGA America offers rates recommended by the American Council on Gift Annuities. Those rates can be found at www.acga-web.org and are also published on the CGA America website.
How does a deferred charitable gift annuity work?
Rather than having your annuity payments begin immediately, you can select to have the first payment begin sometime at least 1 year in the future. When selecting this option, your annuity rate will likely increase modestly. If interested, please indicate such when you Request an Illustration.
How does a flexible deferred gift annuity work?
Similar to a deferred gift annuity, you will be provided a schedule of dates on which your payments will commence. Operating similar to selecting the initial payment period for Social Security, the longer you choose to defer the first payment, the higher such payments will begin. However waiting longer for your payments to commence will not create an additional charitable tax deduction other than the deduction you may be eligible for at the time of making the gift.
When will I receive my annuity payments?
You may select your annuity payments to be delivered monthly, quarterly, semi-annually, or annually. Payments are delivered at the end of each period.
What type of assets can I give?
Cash or marketable securities.
How do I find the cost basis of my gift?
If making a gift of appreciated marketable securities, your investment advisor or custodian of your assets will have that information available. CGA America will require this information in order to accurately produce your annual 1099R statement. If CGA America does not receive this information from you or your financial representative, your cost basis will be considered as 100% of the assets fair market value.
How will my annuity payments be taxed?
The taxation of your annuity payments will be estimated on the illustration accompanying your CGA contract. It will also be reported annually on a 1099R statement.
When will I receive my tax information in order to complete my annual tax return?
CGA America will deliver a 1099R tax statement to the address we presently have on file by January 31st of each year.
I can't find my annual 1099R statement. Can you send me another one?
If, for whatever reason, you did not receive this year's statement or it was misplaced, we would be pleased to send you an additional copy. Just give us a call.
Can I use assets from my IRA or 401(k) to fund a charitable gift annuity?
Yes, its possible but generally not recommended. Why? Because those assets already are held in a tax deferred entity, you would first have to realize the income from the full value of the gift, then only receive a partial tax deduction for your charitable gift annuity. So, while it's possible, it probably doesn't make financial sense for you to do so?
Can I use the IRA Rollover option to make a charitable gift annuity?
No. The IRS currently prohibits such a transaction.
Can I contribute a commercial annuity contract, or make a 1035 exchange, for a charitable gift annuity?
Does CGA America accept gifts of real estate in exchange for an annuity contract?
In general, no. Although there may be extenuating circumstances where we may consider such an arrangement.
Can I name more than one charity to benefit from my gift?
Yes. You can designate as my charities to benefit from you gift as you wish. All such entities will have to qualify as 501(c)3 organizations at the time of the distribution and meet other grant-making compliance standards followed by Charitable Gift America.
What assets "back up" the obligations of my contract?
Your CGA contract will become a general obligation of Charitable Gift America which is required to reserve 110% of all payment liabilities in a segregated reserve fund.
Can I appoint my children or someone else to receive the annuity payments?
Yes, but only at the time of the contract. The IRS and the contract will forbid having the payments assigned to someone else. If appointing someone other than yourself or your spouse to be the annuitant of your CGA contract, you should seek legal, tax, and financial counsel as such a transaction may trigger gift tax, estate tax, or generation skipping tax consequences.
Can my payment be directly deposited into my bank account?
Yes. You can receive a check or receive your payment via ACH direct deposit.
How do I change my address or my automatic deposit information?
Just give us a call. (We may require additional information from you in order to verify the request and attempt to prevent fraud, elder abuse, or identity theft.)
Why does CGA America require my social security number?
This is to ensure that tax-related information is accurately delivered to each annuitant and to the IRS.
Will I get solicited to make additional gifts?
I have a CGA contract with another charity. Can I transfer that to CGA America?
That gift was irrevocably contributed to that organization. Such a transfer would require the organization currently in receipt of your past gift to agree to such a transaction.
Can I assign my annuity payments to someone else?
I want to make a gift, but I'm not sure on which charities should eventually receive the benefit. What should I do?
An option that many donors find attractive is to establish a customized donor advised fund at CGA America, and then name that fund to eventually benefit from the gift. Using that strategy, you can easily add, delete, and amend your charitable priorities or gift restrictions without having to amend your CGA contract.
What fees will be charged to my gift?
The entire pool of assets will be charged no more than a 1% annual fee, which is the same as if you were to establish a donor advised fund or other type of restricted gift with most community foundations or similar organizations. This fee is then pro-rated across the value of the contracts within the pool. Fees are paid on a quarterly basis.
What happens if my contract runs out of money. Will I still be paid?
Yes. A charitable gift annuity contract is a general obligation of CGA America. Regardless of market returns, and regardless of how long you live, the Foundation will remain obligated to make your annuity payment.
FAQs from Donors
1. Make sure you've thoroughly read and reviewed all of the information about CGA America, in particular the Disclosure Statement.
2. Consider which charity or charities should eventually benefit from your gift through CGA America.
3. Request an Illustration by clicking the button above and completing the form.
4. Once you've received the customized illustration, please review all material with your professional financial, tax, and legal advisors.
5. If you wish to move forward with your gift, contact CGA America and we will provide you with a "one click" solution that will be delivered to you via email, along with appropriate transfer and delivery instructions for your gift.
Download a .pdf copy of the Disclosure Statement to thoroughly review and share with your professional legal, tax, and financial advisors.