Charitable Gift Annuity (CGA) Frequently Asked Questions & Answers
What is a Charitable Gift Annuity?
How is the annuity payment determined?
What is the minimum age and amount required to establish a Charitable Gift Annuity with ChildFund?
How does a Charitable Gift Annuity work?
What is a Deferred Gift Annuity?
May I have more than one Charitable Gift Annuity?
May I establish a Charitable Gift Annuity with my spouse or another person?
May I arrange for a Charitable Gift Annuity to pay a second person after I die?
What if I have more questions about Charitable Gift Annuities?
What is a Charitable Gift Annuity?
A Charitable Gift Annuity is a simple contract between you and ChildFund. You give ChildFund a gift of cash or securities, and we agree to pay you a lifetime stream of fixed payments for one or two people. Ultimately your gift will be used to help children.
How is the annuity payment determined?
Annuity rates are determined by your age, whether the annuity is for one or two people, and the amount of your gift. ChildFund uses the rate tables provided by the American Council on Gift Annuities, a national non-profit organization.
What is the minimum age and amount required to establish a Charitable Gift Annuity with ChildFund and begin receiving payments?
You must be 60-years-old to begin receiving payments and the minimum gift amount is $10,000.
How does a Charitable Gift Annuity work?
To illustrate: Mrs. Jones, age 72, gives a gift of $20,000 to ChildFund. She will receive a 6% annual rate of return. This provides her with $1,200 every year for the rest of her life. The payments are fixed and will never change. Mrs. Jones can receive her check by mail or have it deposited directly into her bank account annually, semi-annually, or quarterly – whichever she chooses. When Mrs. Jones dies, the remainder of her gift will be used to help ChildFund children where the need is the greatest.
What is a Deferred Gift Annuity?
You may establish a gift annuity today and defer your payments to a future date. You must be at least 40-years-old and payments will begin when you reach 60 or anytime thereafter. If you are 60 or older when you create your gift annuity, you may specify the date you would like your payments to begin. The rate of return for a deferred annuity is higher and will provide a substantial tax-deduction in the year it is established.
May I have more than one Charitable Gift Annuity?
Yes, you can establish as many Charitable Gift Annuities as you would like. A new contract will be created at any time with new rates based on your closest birthday and current rates. Note: You may not add to an existing Charitable Gift Annuity.
May I establish a Charitable Gift Annuity with my spouse or another person?
Yes. A two-life annuity would share the payment during your lifetime. After you die, the survivor receives the whole payment.
May I arrange for a Charitable Gift Annuity to pay a second person after I die?
A successive life annuity makes it possible for you to receive the whole annuity payment for the rest of your life. After you die, the person you name in the annuity contract receives the payment for the duration of his or her life.
What if I have more questions about Charitable Gift Annuities?
Please call 1-800-762-9593 for more information.
We will be happy to help you with any questions you have.
The purpose of this web page is to provide information of a general nature only. ChildFund is not engaged in providing legal or tax advice. Please consult with your attorney or financial advisor when considering a charitable gift of any type.