Tangible Evidence that in Giving, You Receive
You know that when you give from your heart, you receive more than you ever thought imaginable. It may surprise you to learn that U.S. tax laws take this reality one step further by allowing you to give now, and in return, receive a stream of income for the rest of your life. The Charitable Gift Annuity (CGA) is one way many friends of Village Missions maximize the impact of their desire to participate in our ministry for years to come.
In legal terms, the Charitable Gift Annuity is a contract between you and a charitable foundation selected by Village Missions. The contract is based on your decision to transfer assets – usually cash or securities – to the foundation, and the foundation’s guarantee to pay a specified annuity to you. The annuity can begin immediately, or be deferred. It can be for one life, or joint lives. Village Missions works with several carefully selected foundations. The foundation that we use for your gift primarily depends on the state in which you reside.
If the CGA is funded with appreciated stock or property, a portion of the capital gains tax is bypassed, resulting in a very real cash savings. In addition, a portion of each annuity payment is tax-free income, a very nice benefit when using the CGA as a part of your retirement planning. This is possible because of the part gift/part annuity nature of the CGA and because our tax laws characterize each payment as part income and part return of principal.
When all tax savings are considered, the actual annual “return” on a Charitable Gift Annuity is very attractive. Contact us today for a free no-obligation analysis of your CGA. In addition, you can download a Charitable Gift Annuity Application.
*Village Missions presents this information as an educational service to friends and supporters. In addition, you should always consult your personal legal and tax professionals.