What is a Charitable Gift Annuity?
A Charitable Gift Annuity (CGA) is an income-producing, charitable tool. You make an irrevocable gift of cash or securities to fund a charitable gift annuity contract. In return, Focus on the Family will make fixed income payments to you for life. At the end of the contract, the remaining amount becomes a legacy gift to support Focus on the Family’s mission to see families thrive in Christ.
With this simple tool, you’ll also receive a partial tax deduction on the funding amount and a portion of your payments come back as tax-free income, making this a very tax-favored tool.
A charitable gift annuity with Focus on the Family guarantees income for a lifetime and helps families thrive in Christ.
Request a free, personalized illustration to see what payments and tax benefits could look like for you!
How does a CGA work?
A CGA can provide guarantee income for your lifetime or the lifetimes of you and a second person. Annuitants can select to receive their payments annually, bi-annually, or quarterly.
Payments, which are based on several factors including the age at the time of funding, are fixed, will never fluctuate, and cannot be outlived. To ensure funds will always be available for your payments, Focus will hold the entire funding amount in reserve.
Supporting Focus on the Family beyond your lifetime helps to ensure that the ministry will be here to stand in the gap for parents, expectant mothers, children, and the biblical culture of family for the next generation.
CGAs are a great tool to help you supplement income for retirement and achieve your charitable goals. Even if you haven’t retired, you can choose a Deferred CGA. This means you can still receive an immediate charitable income tax deduction but defer the start of payments until later when you’ll need them. The longer you defer payments, the higher your distributions will be.
In December 2022, the Secure Act 2.0 expanded IRA benefits to include utilizing a Qualified Charitable Distribution (QCD) for fund a CGA. Read more about this here.
What are the benefits of a Charitable Gift Annuity?
- Receive partially tax-free, fixed income payments for yourself and/or another person for life.
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Receive an immediate charitable income-tax deduction for the charitable gift portion of the annuity.
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Create a legacy gift to help families thrive in Christ for generations to come.
What kinds of gift annuities are available?
- Receive partially tax-free, fixed income payments for yourself and/or another person for life.
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Receive an immediate charitable income-tax deduction for the charitable gift portion of the annuity.
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Create a legacy gift to help families thrive in Christ for generations to come.
Featured Resource
Free eBook “Charitable Gift Annuity”
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