The Our Fund Foundation’s CFO, Mark Blaylock, pictured with Joe Pallant
What is a CGA? A Charitable Gift Annuity is an agreement between you and a charitable organization where a donor contributes either cash or another asset to a non-profit organization in return for a guaranteed lifetime stream of income. In addition, the donor receives a tax deduction in the year the gift is made, and a portion of the annual payment is also considered tax-free income. The rates are set with the anticipation that 50% of the annuity balance will become a gift to the charity upon your passing.
CGA rates are set by the American Council on Gift Annuities and are the highest in 2024 than they have been in 16 years. Once you establish a CGA, your rate is set and cannot be changed. CGA rates are based solely on your age – and can be established either for a single life donor or joint-life for two individuals. Below are some rates currently in place for an individual-life CGA:
| Age | Rate | Age | Rate |
| 60 | 5.2% | 75 | 7.0% |
| 65 | 5.7% | 80 | 8.1% |
| 70 | 6.3% | 85 | 9.1% |
Due to the fact that you receive a tax deduction when the CGA is established and a portion of the annual CGA payment is tax-free income, your effective after-tax rate can be significantly higher than the above rates. Our Fund Foundation recently had a CGA purchased with a stated rate of 8.5%, with an effective rate of 11.8% after the tax savings were calculated.
If you would like to learn more about Charitable Gift Annuities and how this planned giving vehicle that provides both lifetime income for you AND a charitable gift in the future for our community, reach out and give us a call at 954-565-1090.
