Charitable Gift Annuities

Donors seeking to make a gift, but still wanting to keep their money working for them can select the Charitable Gift Annuity (CGA).  The CGA is a contract between Goodwin House Foundation and the donor, which will provide the donor with: a charitable deduction for a portion of the gift made; partially tax-free income for the life expectancy of the donor and the second beneficiary, if designated; and partial avoidance from capital gains, if appreciated securities or property are used to establish the annuity.

Gift Amounts and Limitations

GHF Board of Directors has established the following minimum amounts for charitable gifts and annuities.  Annuity trusts, unitrusts, and gift annuities are not allowable below specific sizes.

Charitable Gift Annuity$5,000
Deferred Gift Annuity$10,000
Charitable Remainder Annuity Trust$100,000
Charitable Remainder Unitrust$100,000
Charitable Lead Trust$50,000

 

As required by law, GHF may only accept life income gifts for one or two lives and also over a set term of years.  The usual minimum age for acceptance of the donor/first life income beneficiary is sixty-five (65).  The minimum age for a second annuitant is fifty-five (55).  The exception to the above would be the deferred gift annuity.

The Charitable Gift Annuity (CGA) generates cash payments to a donor for life in exchange for a transfer of cash, marketable securities, or property.  CGAs may be immediate or deferred.  The difference between an immediate and a deferred gift annuity is a deferred annuity pay-out starts at a date in the future.  The Foundation policies specify that all CGA’s:

  • will offer rates that conform to the gift annuity rates set by the American Council on Gift Annuities;
  • will only be offered to Virginia residents;
  • will not be promoted as investment vehicles or compared to any investment alternatives;
  • may not be written for less than $5,000; and
  • must have the minimum age of 65 years for the donor and 55 years for a second annuitant, if any is designated.