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CGA: What's That?

In these days when every group, organization, and team has an acronym, you say, "What is CGA, and how does it relate to CE National?

Well, CGA is Charitable Gift Annuity, a means of giving a gift to a not-for-profit organization or ministry. And guess what? You, or you and your spouse, receive an income stream from this gift for life.

This is an excellent opportunity to give and to receive and to support a ministry for a particular program in which you are quite interested, or a means of supporting the general operating funds of the ministry, CE National in this case.

You say, well, that's all well and good, but it sounds too easy. It is quite easy! All you have to do is determine how much you would like to invest in a Gift Annuity, and we do the rest.

The larger the gift given, the better the return to you on a quarterly, semi-annual, or annual basis. The percentage of return is determined by your age. In other words, if you give a gift and you are 75 years of age, you will receive a better rate of return on your dollars than a person who is 65 years of age.

In addition to the money you will receive, at the creation of the Gift Annuity, you will also receive tax benefits based on the amount funding the Annuity.

Gift Annuity rates are based on a schedule determined by the American Council on Gift Annuities and use the above ages. A person 65 years of age would receive a return at 6% and a person 75 years of age would receive a 7.1% return. The older the individual, the higher the percentage rate up to 11.3% at age 90 years. These rates are locked in.

The Annuity mentioned in the preceding paragraph is for a single life.
Two-Life Annuities are also available based on the ages of both you and your spouse.

This is a wonderful program, but one thing must be considered. The IRS considers this program irrevocable in nature, and any gift invested cannot be retrieved. It becomes a gift to the receiving ministry, thus it cannot be cancelled. At your death, the remaining dollars belong to organization or ministry

During your life, CE National's commitment is to pay out the income stream to the donor. This is very beneficial for both the donor and CE National.

Are you interested? Contact either CE National or Bud Barger, Estate Planning Consultant for CE National at e-mail address EstatePlanning@cenational.org to learn more.