What is a charitable gift annuity?
A charitable gift annuity (CGA) is an agreement between you and Orchard Alliance on behalf of China Outreach Ministries (COM). You agree to donate cash or an asset. It is invested with Orchard Alliance on behalf of COM and a set percentage of it is paid to you every year for the rest of your life.
A CGA is a great way to make a gift to COM while, at the same time, creating a fixed income stream for life. Because of their easy set-up and attractive rates, they continue to be one of our most popular tools for donors. If you are 65 years of age or older, you simply make a gift of $10,000 or more in cash or securities in exchange for a non-revocable gift annuity agreement. The payment rate you receive is based on your age(s) at the time you make the gift. You will receive a tax deduction and part of your payments may be tax-free. When you go to heaven, the amount remaining in your CGA will then be given to COM to be used for specific ministry priorities.
What are the benefits of this type of gift?
- Great Rates – based on your age at the time your gift annuity is funded. Rates can vary between 5% and 10% based on age and date of gift.
- Income stream for one or two lifetimes
- Immediate (partial) tax deduction and tax-free income (possibly) for years
- Deferred and possibly avoided capital gains tax for gifts of appreciated securities
- At death, a gift of the residuum to China Outreach Ministries
What are my options with this type of gift?
There are excellent options for establishing a charitable gift annuity:
- Single-Life: Pays a fixed amount for the lifetime of one person.
- Two-Life: Pays a fixed amount for the lifetime of two people.
- Immediate (single- or two-life): For current income, you may begin receiving a fixed income as early as this year in exchange for your gift.
- Deferred (single- or two-life): If you desire to begin receiving income at a fixed date in the future, you may establish the gift annuity and take your charitable deduction now; then plan to receive payments beginning at a designated future date. Anyone over the age of 55 is eligible to establish a Deferred CGA. Payments must be deferred until after the annuitant(s) reaches a minimum age of 65.
Start a conversation
Remember, charitable gift annuity agreements are irrevocable, so you should put much thought into establishing one. If you have any questions about this type of giving or wish to get this process started, please reach out to Kirk Zuercher by phone at 717-591-3500 or by email at firstname.lastname@example.org.
Thank you for your desire to support the work of China Outreach Ministries through this special type of gift.
This is not considered tax, legal, or financial advice. Always consult a financial professional for specifics on your personal situation or to be sure this way of giving is right for you.