Charitable Gift Annuities:
Gifts That Give Back
Receive Income for Life and Save on Taxes
When we give, it is because we support a certain cause or mission. Not because we expect something in return. However, there are gifts that allow you to support ORT America while also receiving benefits. Charitable gift annuities (CGA) are gifts that give back and pay you income for life.
How It Works
When you give a CGA, you make a contribution of cash, marketable securities or other appreciated property owned longer than one year to ORT America. In return, we agree to make fixed payments to you for the rest of your life. The annual rate of your payment is based on your age at the time of the gift. The older you are, the higher the rate. Your payment rate does not fluctuate with the stock market, interest rates or inflation. It is firmly set at the time of your gift and never changes. After your lifetime, ORT America uses the remaining balance for our work.
You can also provide payments for another individual—typically your spouse, but it could also be a parent, adult child, family member or friend. Or you can establish a two-life gift annuity that pays you and another person if you choose.
Benefits of a Charitable Gift Annuity
- Based on life expectancy, older annuitants (the person or people receiving the CGA payments) have higher payment rates.
- You have potential to receive increased disposable income.
- You may receive an income tax charitable deduction (if you itemize) in the year you set up the gift annuity.
- Each year a portion of your payment is income tax-free, until you reach your anticipated life expectancy.
- If you fund your gift annuity with appreciated property, rather than cash, you could benefit even more with favorable capital gains tax treatment at the time of your gift.
- After your lifetime, the remaining portion of your gift will support our mission, helping to fulfill your philanthropic goals.
Keep Your Cash!
You can fund a charitable gift annuity with more than just cash. Perhaps you have stock that is producing lower dividends than you had planned on, or you have securities that have turned out to be higher risk than you are currently comfortable with. You can exchange those for a secure, stable charitable gift annuity and maintain day-to-day financial security. Talk with us or your financial advisor about creative options for funding a gift annuity.
An Example
Our donor, age 75, wants to make a contribution to ORT America but they also want to ensure they have dependable income during their retirement years. They fund a $25,000 charitable gift annuity with appreciated stock that they originally purchased for $10,000.
Based on their age, our donor will receive a payment rate of 7.2% which means that they will receive approximately $1,800 each year for the remainder of their life. They are also eligible for a federal income tax charitable deduction of $9,961* when they itemizes.
Check with our representative for current rates and applicable ages for charitable gift annuity eligibility.
| One Recipient | |
|---|---|
| Age | Rate |
| 65 | 5.8% |
| 70 | 6.4% |
| 75 | 7.2% |
| 80 | 8.3% |
| 85 | 9.4% |
| 90+ | 10.5% |
*Based on a 5.2% charitable midterm federal rate. Deductions and calculations will vary depending on your personal circumstances.