Charitable Gift Annuities
by David Warnock
Q: My husband and I are both 70 years old, retired, and holding about $40,000 worth of his former company’s stock. We want to use it to support “the least of these” through Heaven’s Family, but we fear that we may outlive other retirement money that we currently depend on and may need to eventually draw on that $40,000. My sister suggested we look into a Charitable Gift Annuity. Does Heaven’s Family offer those, and can you explain how they work?
A: A Charitable Gift Annuity (CGA) could be a good solution for you, and Heaven’s Family does offer sound CGAs through our partnership with the National Christian Foundation.
It is important to understand that a Charitable Gift Annuity is part charitable gift and part annuity. As a contributor/annuitant, you simply make a contribution of either cash or publicly traded securities (minimum $10,000) in exchange for receiving fixed annuity payments for the rest of your life (or for the rest of you and your spouse’s lives).
You (or your family or a designated friend) can receive those life-long payments either quarterly, semi-annually, or annually. You can choose to start receiving payments immediately or defer them.
Other benefits of a Charitable Gift Annuity include receiving an immediate charitable income tax deduction, limiting capital gains taxes on appreciated securities contributed, and easing estate taxes by removing the assets from your estate before your death.
Heaven’s Family Charitable Gift Annuities offer annuity rates that are recommended by the American Council on Gift Annuities, the leading publisher of suggested charitable gift annuity rates.
National Christian Foundation is the issuer of Heaven’s Family’s CGAs, exercising vigilant and prudent policies that provide maximum security for all of the CGAs they issue. In addition, National Christian Foundation typically reinsures their Charitable Gift Annuities for even greater security.
If you are interested in discussing how a Charitable Gift Annuity might serve as a blessing to you and to “the least of these” among our spiritual family, feel free to give me a call or send me an email.
David Warnock is happy to assist you with your questions regarding strategic stewardship. You can reach him at (412) 833-5826 or email him at DavidW [at] HeavensFamily [dot] org.