A charitable gift annuity is a gift made to a charity that can provide you with a secure source of fixed payments for life.
Charitable Gift Annuities (CGAs) create lifetime payments to the donor as well as tax saving. They can provide an income tax deduction
the year the gift is made. They create capital gains tax savings when funded with appreciated assets. If you have any questions about
charitable gift annuities, please contact us. We would be happy to assist you and answer your questions.
2023 UPDATE (SECURE ACT 2.0) -
Section 307 of the Secure 2.0 Act allows a one-time rollover of $53,000
from an IRA to a Charitable Gift Annuity (CGA). CGAs create lifetime
payments to the donor. Nonprofits who offer CGAs are required to have a
CGA license issued by The State of California's Department of
Insurance. This is an involved process, so only a small percentage of
charities offer CGAs. The charity's obligation to make the income
payout is backed by the general assets of the charity.
United Way of Santa Barbara County has offered CGAs since 1984.
If you have any questions about charitable gift annuities, would like a
customized 2023 IRA to CGA rollover illustration or would like general
2023 IRA to CGA materials, please
contact us.
Separately from the SECURE ACT 2.0, on January 1, 2023 CGA rates will
be the highest they have been in over a decade. The maximum suggested
rate for a 79-year-old annuitant, which is the average age of an
annuitant when a gift annuity is funded, will increase to 7.4%
www.acga-web.org/gift-annuity-rates-upcoming
More IRA to Gift Annuity Rollover
You may be tired of living at the mercy of the fluctuating stock and real estate markets. A charitable gift annuity is a gift made to United Way of Santa Barbara County that can provide you with a secure source of fixed payments for life.
Charitable Gift Annuities (CGAs) create lifetime payments to the donor as well as tax saving. They can provide an income tax deduction the year the gift is made. They create capital gains tax savings when funded with appreciated assets. CGAs provide the joy of giving to a favorite cause.
Nonprofits who want to offer this popular planned giving option are required to have a CGA license issued by The State of California's Department of Insurance. This is an involved process, so only a small percentage of charities offer CGAs.
The charity's obligation to make the income payout is backed by the general assets of the charity.
Charitable Gift Annuity
Stock or Cash
Gift Annuity
Donor
UWSBC
Benefits of a charitable gift annuity
- Receive fixed payments to you or another annuitant you designate for life
- Receive a charitable income tax deduction for the charitable gift portion of the annuity
- Benefit from payments that may be partially tax-free
- Further the charitable work of United Way of Santa Barbara County with your gift
How a charitable gift annuity works
A charitable gift annuity is a way to make a gift to support United Way of Santa Barbara County.
- You transfer cash or property to United Way of Santa Barbara County.
- In exchange, we promise to pay fixed payments to you for life. The payment can be quite high depending on your age, and a portion of each payment may even be tax-free.
- You will receive a charitable income tax deduction for the gift portion of the annuity.
- You also receive satisfaction, knowing that you will be helping further our mission.
If you decide to fund your gift annuity with cash, a significant portion of the annuity payment will be tax-free. You may also make a gift of appreciated securities to fund a gift annuity and avoid a portion of the capital gains tax. Please contact us to inquire about other assets that you might be able to use to fund a charitable gift annuity.
Current charitable gift annuity (payments begin within one year). With a current gift annuity, you may transfer cash or property in exchange for our promise to pay you fixed payments beginning as early as this year. You will receive an income tax charitable deduction this year for the value of your gift to United Way of Santa Barbara County.
Deferred charitable gift annuity (for payments at future date). Perhaps you are not ready to begin receiving payments until a future date, such as when you retire. With a deferred gift annuity, you establish the gift annuity today, receive a charitable income tax deduction this year, but defer the payments until a designated date sometime in the future. Best of all, because you deferred the payments, your annual payment will be higher when the payments start than they would have been with a current gift annuity.
Flexible deferred charitable gift annuity (gives you flexibility as to when the payments will start). With a flexible deferred gift annuity, you retain the flexibility to decide when the annuity will begin making payments. As with a deferred gift annuity, you establish the annuity today and receive a charitable deduction this year, but the payments are deferred until such time as you elect to begin receiving the payments.
Contact us
If you have any questions about charitable gift annuities, please contact us. We would be happy to assist you and answer your questions.
