CHARITABLE GIFT ANNUITY
Charitable Gift Annuities (CGA) are the gifts that pay you back. With a CGA, you provide the Foundation with a tax deductible gift of cash, appreciated securities, or other acceptable asset. In return, you receive a fixed income for the remainder of your life. When annuity payments end, the remaining principle of your gift becomes available to the Foundation for your designated purpose.
How does a CGA work?
You give cash or securities to the Sigma Chi Foundation in exchange for a contract that obligates us to pay a fixed amount for life to you alone or to you and another person you select. What's left of your gift after payments end helps support the mission of Sigma Chi.
How are the payment amounts determined?
The annual rate of your payment is based on your age at the time of the gift. The older you are, the higher your annuity rate. Payment rates are locked in for the duration of the gift annuity.
What are my tax benefits for making this type of gift?
You qualify for a charitable income tax deduction in the year you set up the gift annuity. In addition, each year a portion of your payment is income tax-free, until you reach your anticipated life-expectancy. Plus, part of your payments may be taxed at a lower capital gains tax rate.
What are the minimum requirements to start a CGA?
Due to state regulations, this varies based on your state of residence. The minimum gift amount is $10,000 and the minimum age is 72, however minimums are higher for residents in some states.
Due to varying restrictions, the Sigma Chi Foundation is not able to offer gift annuities in some states. To find out the guide-lines for your state, please contact the Foundation.
What is a Deferred Gift Annuity?
A Deferred Gift Annuity delays payment until a later date, such as retirement or another significant date. Donors younger than the minimum age or those who want to delay payments contribute now and receive payment when they would like. The rates and tax deduction for a deferred gift annuity are significantly higher than an immediate payment CGA.
The Sigma Chi Foundation recognizes those who create planned gifts with membership in the James Parks Caldwell Society. For more information about our CGA program or any of our Planned Giving options, please contact Chris Brooks at 847-869-3655, ext. 266 or at firstname.lastname@example.org. You can also speak to one of our Gift Officers. This information is not intended to serve as legal or tax advice. Please consult a professional advisor.