What is a Charitable Gift Annuity, you ask…?
It’s a great way to make a gift to St. Paul’s and receive an income in return! A charitable gift annuity (CGA) is available to people 65 years or over. A CGA involves a simple contract between a donor (you) and St. Paul’s, whereby you transfer cash to St. Paul’s in exchange for a partial tax deduction and a lifetime stream of annual income from the charity. The seniors and the mission of St. Paul’s will continue to benefit from your legacy, even after you’ve passed on.
Right now, a typical Certificate of Deposit (CD) is paying near 1% interest and a savings account is paying even less. For someone 70 years old, a charitable annuity offers a return of over 5%, and the rates just get higher for those who are older.
In addition to a higher interest rate on your investment, there are other distinct advantages that charitable gift annuities offer:
- You receive a guaranteed set income for the rest of your life. Your payments are not affected by the ups and downs of the economy
- You can arrange a single annuity, where one person receives a payment, or a two-life annuity, where two people can receive payments
- You will receive an income tax deduction that can be spread over several years
- By paying with stocks or securities, you can avoid capital gains tax on the gift portion of the annuity
- Estate planning is simplified, and the gift annuity is not included in probate proceedings
- You help ensure the future of St. Paul’s Senior Services for years to come!
If you would like to learn more about why a Charitable Gift Annuity may be right for you, please contact Liam Dunfey, Director of Major Gifts & Planned Giving, via email or at (619) 239-6900.