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Charitable Annuities

A Charitable Gift Annuity is a wonderful way to increase your income, reduce your tax bill and make a contribution to benefit the community - all in one transaction.

Definition
A Charitable Gift Annuity (CGA) is a way to make a charitable gift, and still receive income for yourself or others during your or their lifetime. It is a contract under which the Community Foundation agrees to pay a fixed sum of money for one or two lives in return for a gift of cash or marketable securities. The person who makes the gift is the “donor”, and the person who receives payments is called the “annuitant”. Usually, the annuitant is also the donor, but not always. The maximum number of possible annuitants is two, and payments can be made to them jointly or successively. Upon the death of the (last) annuitant the remainder goes to the Community Foundation and is used in perpetuity as the donor directs at the time of establishing the Charitable Gift Annuity.

You can give cash or stocks, appreciated securities being the most advantageous, to set-up your annuity.

Here are some of the features of a Charitable Gift Annuity:

Great Rate of Return
Current CGA rates are very attractive. The older you are the greater the amount of interest you will earn.

Here are a few examples for Single Life Annuity Rates.

Age	Interest Rate
60	5.7%
70	6.5%
80	8.0%
90	11.3%

Guaranteed Fixed Payments
Your payments are determined when you establish your Charitable Gift Annuity and continue regardless of change in interest rates. You therefore can count on a consistent amount annually, usually paid quarterly.

Tax-Free Payments
Part of each annuity payment is tax-free.

Income Tax Deduction
Because a Charitable Gift Annuity is partly a gift and partly an investment, if you itemize, you are entitled to an income tax deduction for a portion of your annuity.

Future Use
You can determine the future use of the remainder of the annuity when you establish your Charitable Gift Annuity at our Community Foundation. You may elect to have it used for unrestricted grantmaking, to benefit a specific organization, field of interest (arts, education, etc.), or a geographic area (Northern Middlesex County, your local community, etc.).

Sound interesting?
Give us a call to discuss the details of what your annuity could provide. We can describe personalized scenarios at no obligation and will be happy to answer all your questions.