Planned Giving – CGAs

Charitable Gift Annuities

What Is A Charitable Gift Annuity (CGA)?

A charitable gift annuity is a simple contractual agreement between you and WFIA. In exchange for your irrevocable gift of cash or securities, WFIA agrees to pay a fixed amount to one or two people, each year, for life The older you are when you create the gift annuity the higher your gift annuity rate. After the last payment, the remaining account balance comes to WFIA to be used as you direct.

How You Benefit

• Lifetime Payments: Receive payments that you can't outlive
• Tax-Advantaged Payments: A large portion of each payment is tax-free if funded with cash
• Charitable Deduction: You may claim a charitable deduction for the charitable portion of the gift annuity
• Attractive Rates based on your age
• Secure Payments: Your annuity payments are guaranteed by all of the assets Williamsburg Faith In Action

Giving Appreciated Securities

A key benefit of a charitable gift annuity is the ability to fund it with a gift of appreciated securities. Your annuity payment will be based on the full fair market value of the donated shares. A portion of the capital gain is avoided and the remainder is spread over an IRS-determined term of years. The capital gain portion of the payout reduces the amount of tax-free payment you receive. You may claim the same charitable deduction as if the annuity is funded with cash.

Giving Appreciated Securities

A key benefit of a charitable gift annuity is the ability to fund it with a gift of appreciated securities. Your annuity payment will be based on the full fair market value of the donated shares. A portion of the capital gain is avoided and the remainder is spread over an IRS-determined term of years. The capital gain portion of the payout reduces the amount of tax-free payment you receive. You may claim the same charitable deduction as if the annuity is funded with cash.

Giving Appreciated Securities

A key benefit of a charitable gift annuity is the ability to fund it with a gift of appreciated securities. Your annuity payment will be based on the full fair market value of the donated shares. A portion of the capital gain is avoided and the remainder is spread over an IRS-determined term of years. The capital gain portion of the payout reduces the amount of tax-free payment you receive. You may claim the same charitable deduction as if the annuity is funded with cash.

Taxation of Your Annuity Payments

When Funded With Cash:  The taxable portion of the capital gain is spread over an IRS-determined term of years and reduces the amount of tax-free payment you receive. There after the entire payment is taxed as ordinary income.

When Funded With Appreciated Securities: The taxable portion of the capital gain is spread over an IRS-determined term of years, and reduces the amount of tax-free payment you receive. Thereafter the entire payment is taxed as ordinary income.

Deferring Your Payments

If your concern is to have more income at a future date, you may choose to fund a charitable gift annuity with deferred payments. You earn a current income tax deduction, and your payments are deferred to a specific future date or you may create a flexible starting date.

Contact Us

If you have any questions about Charitable Gift Annuities, please Contact Us. Call 757-258-5890 or email bminett@wfia.org. We would be happy to assist you and answer your questions.