A gift annuity is an agreement where a donor makes a gift of cash or property and a charity agrees to make fixed payments to the donor for life. A charitable gift annuity (CGA) is a contract between a donor and a charity.
A donor gives cash or appreciated property to .
In exchange, a charity makes fixed payments for the lifetime(s) of one or two individuals.
Gift annuity payments are based on a rate schedule. Many charities use rates set by the American Council on Gift Annuities (ACGA). Under the ACGA’s rates, the older the age of the person receiving gift annuity payments, the higher the rate.
Taxation of Payments
A predetermined portion of each gift annuity payment is tax-free and the remaining amount of each payment is taxable at ordinary tax rates.
Fixed Payments for Life
A gift annuity contract provides fixed payments to one or two individuals for life.
A gift annuity contract can begin making payments immediately (a current gift annuity) or defer payments for at least one year (a deferred gift annuity).
Partly Tax-Free Payments
A portion of each gift annuity payment to the donor is tax-free.
Rates by Age
Annual gift annuity payouts are based on the donor’s age (rates are higher for older donors).
The donor receives a current federal income tax deduction for the present value of the gift to charity.
Since the information on this site is not intended as legal, tax, or investment advice, it is highly recommended that prospective donors consult with their own tax or legal advisers prior to making a planned gift.
If you simply would like a to have a Mayan Families Planning representative contact you about options available, please contact:
2609 Hartford St.
San Diego, CA. 92110-2315