By Jared Lindell
Since the Community Foundation began offering Charitable Gift Annuities (CGA) this past January, many donors have asked the question: Is the CGA the right giving tool for me? While it is true that the CGA is not the best giving tool in all instances, when the situation is right, this gift can be the simplest and most beneficial to many donors.
There are three key aspects to a CGA that will help you determine whether or not you should consider establishing one with CRCF. The first and most critical point is that you need to have the desire to move some assets without totally losing the assets. An easier way to say this is that you want to make a gift but still need to have some return from the monies you wish to give. With a Charitable Gift Annuity, you make a gift to the CRCF and will receive fixed income payments for life based on your age and size of the gift. Therefore, you will always see a return on your gift as long as you live. If you have money you wish to give but do not need the return, then simply naming CRCF in your will or establishing an endowment fund become much better options.
Secondly, there is a common misconception that revolves around a CGA. Many donors feel they need to have hundreds of thousands of dollars in order to establish or see any benefit from a CGA. Therefore, many donors feel like this might not be the right gift for them. While it is true that some organizations will not allow CGAs to be established at any value below $15,000 to $20,000, the Community Foundation accepts CGAs starting at $5,000. This provides any donor with the opportunity to explore this as a giving option, without having to worry about completely reorganizing your portfolio. So, you do not need to be a multimillionaire to consider establishing a CGA.
Finally, you must be charitably-minded. This almost goes without saying when making any type of gift to the Community Foundation, as all donors have some charitable intent. However, with the CGA, your gift today will stand to benefit a community organization a number of years down the road. If you have established a CGA, then at the time of your passing, the remaining monies from your initial gift will be transferred into an endowment fund at the Community Foundation. This fund will benefit an organization or cause that you determine at the time you sign the CGA contract. So while your initial gift benefits you today, it will ultimately stand to benefit the community later.
If a Charitable Gift Annuity sounds like it might be the right giving option for you, call the Community Foundation at 661-3390. The Foundation staff would be happy to provide you with an illustration for your potential gift. You can also visit CRCF’s planned giving website at www.crcfgift.org. Within this site, you can run your own illustrations or simply read up on today’s giving trends. The Charitable Gift Annuity is just another way the Foundation can continue to provide you with the best giving tools, and, with a little education, this very well may be the perfect gift for you.
Published in the July 30th edition of The Post-Journal