Charitable Gift Annuities

A guaranteed paycheck for life? What’s not to like?

With a Charitable Gift Annuity, you can make a gift and receive a guaranteed, secure “paycheck” for life.

Other benefits include:

Tax Free Payments

Enjoy a portion of your secure payments tax free for several years.

Tax Free Payments

Get higher payments compared to CDs and savings accounts.

Tax Free Payments

Help others and receive a charitable tax deduction. It’s a win-win.

How Does a Charitable Gift Annuity Work?

Here is a simple video that explains how a Charitable Gift Annuity (CGA) works. You will be delighted to learn how easy it is to make a gift and receive guaranteed income for life.

Calculate Your “ Paycheck” Here.

Here is a simple Gift Annuity calculator that easily illustrates your approximate guaranteed payments for life. Try it! Then, contact us for a more detailed illustration.

Receive dependable, cash-flow for life. Market fluctuations do not change your paycheck.
Receive payments at a rate much higher than the interest currently available on investments. Depending on age, could be above 8%.
Receive an immediate income tax deduction for a portion of your gift.
Enjoy a portion of your annuity payments that will be tax-free for a number of years.

A Charitable Gift Annuity is right for you if:

You want to make a significant gift to us and receive lifetime payments in return.
You want to maximize the payments you receive from your planned gift — and you want to lower your income tax on those payments.
You want the security of payment amounts that won’t change during your lifetime.
You appreciate the safety of your payments being a general financial obligation of our organization.
You like the idea of supplemental income you can’t outlive.

Of all the gifts that pay you back, the charitable gift annuity is the simplest, most affordable, and most popular. You make a gift to our organization and in return, we agree to make fixed payments to you for life (calculate your payments here). The gift agreement is a simple contract between you and Team.

When the contract ends, we apply the balance of the gift annuity to support the area of our mission that you chose when you made your gift.

Gift annuities offer attractive tax benefits:

You will receive a federal income tax deduction for a portion of your gift, based on the full value of the assets you contribute minus the present value of the life-income interest you retain.
If you fund your charitable gift annuity with appreciated securities, naming yourself as beneficiary, no capital gains tax is due on the transfer. Only a portion of your capital gain will be reportable, and the tax will be spread over your annuity payments.
Part of each annuity payment will be treated as tax-free return of your principal. This effectively increases the yield from your annuity over your life expectancy.

Your gift annuity can start payments once you have made your contribution (an immediate payment gift annuity), or payments can begin at a later date selected by you (a deferred payment gift annuity). Deferral entitles you to a higher annuity rate and a larger charitable deduction.

Most Common Uses

Supplement Income in Retirement — If you have already retired and want to want to increase the yield from low dividend stocks or other interest-bearing assets, a charitable gift annuity can provide you with guaranteed fixed income for life at a rate higher than most dividends, CDs or savings accounts. Best of all, when the annuity matures, you support our mission.
Income to Aging Parents — Many members of the “sandwich” generation face the difficult task of caring for children at the same time they are providing help and support for aging parents. Frequently these parents do not want to take money from their children, causing them financial hardship. A charitable gift annuity can provide payments or direct deposit to your aging parent or parents, all while providing you with both peace of mind and an income tax deduction.

Planning points

A charitable gift annuity at Team can be created with a gift of $10,000 or more.
Gift annuities make the benefits of a life-income gift accessible to many donors.
Your gift annuity can make payments to a maximum of two people (calculate your payments here).
Gift annuity rates are partly determined by the age of the beneficiary.
Younger donors may find planning benefits in a deferred gift annuity.
A Gift Annuity can be an important part of a comprehensive retirement and estate plan.

Empowering People. Empowering the World

Frequently Asked Questions

How can I calculate my benefits?

Try our gift calculator! It’s fun and educational.
How are the annuity payments secured?

A gift annuity contract becomes a legal financial obligation of Team and is backed by all of our unrestricted assets.
Is it better to give cash or appreciated securities for my gift annuity?

Both have distinct advantages. A gift of cash will produce a larger tax-free portion of the annuity. A gift of stock can increase your income by reducing capital gains cost. Both assets produce an equal annuity rate and charitable income tax deduction.
Can I include my children as income beneficiaries of my gift annuity?

A charitable gift annuity can only be set up for one or two lives. Certain age restrictions apply. Contact us for more details.
What’s the difference between a commercial annuity and a charitable gift annuity?

A commercial annuity, typically sold by banks and life insurance companies, will provide the owner with fixed or variable income based on commercial rates of return. These plans establish their annuity payments based on the assumption that all of the assets in the plan will be used up by the end of the income beneficiaries’ lives.

A charitable gift annuity is part guaranteed annuity and part charitable contribution. The donor receives a partial income tax deduction based on the calculated value of the portion of the gift the organization will ultimately receive. A gift annuity establishes its payments on the assumption that there will be something left for the organization at the end of the contract. Often annuity rates for gift annuities cannot compete with the annuity rates of a commercial annuity because of the charitable component in the contracts. But then, there are fewer tax benefits with a commercial annuity, and the amount of your “paycheck” fluctuates with the market.
Can I defer my annuity payments?

Yes, you can make a gift now for an annuity contract that will defer your payments to a future date that you decide, typically sometime in your retirement years when you will need the income. In this sense, a deferred payment gift annuity can serve as a type of tax-deferred savings plan that will provide you with guaranteed income in the future. Please contact us for more details.

Notice to residents of South Dakota:
Charitable gift annuities are not regulated by and are not under the jurisdiction of the South Dakota division of insurance.

Notice to residents of Oklahoma:
A charitable gift annuity is not regulated by the Oklahoma Insurance Department nor protected by a guaranty association affiliated with the Oklahoma Insurance Department.