What Is a Gift Annuity?
A charitable gift annuity (CGA) is a way to support JFCS’ mission and receive regular, fixed payments for life. It is a simple contract between you and JFCS where JFCS promises to pay a fixed amount to you and/or a loved one in exchange for a gift of cash or securities. The amount of your payments is based on the age of you and/or your beneficiaries’ ages and the value of your donated asset. Payments can be made to you in annual, semi-annual, or quarterly installments. After your lifetime(s), the remaining balance passes to JFCS.
What Kinds of Benefits Can I Expect?
Fixed income for life: You receive regular payments for the rest of your life.
A very favorable payout rate: Annuity payout rates are very attractive, especially when compared with conventional savings plans, such as money market accounts and CDs.
Tax savings: A gift annuity provides significant tax savings right from the start. You receive an immediate income tax deduction for a portion of your contribution, and a significant portion of each income payment may be tax-free. In addition, if you fund your annuity with stocks that have increased in value, your capital gain tax liability will be reduced.
Flexibility: You decide how you will receive your annuity payments and when they will begin.
Security: Your gift investment is fully backed by JFCS and is not affected by market fluctuations.
Personal satisfaction: After your and/or your beneficiaries’ lifetimes, the balance goes to JFCS to carry on our mission of providing comprehensive services to people in our community who are in need.
What Kinds of Gift Annuities Are Available?
JFCS will work with you to determine what kind of CGA meets your personal needs and objectives:
Immediate: Payments begin within one year.
Deferred: Allows you to make a gift today and select a date in the future when you would like payments to begin. The longer you delay your payment start date, the higher your rate of payout.
Flexible: You do not have to choose a definite payment starting date at the time you set up your gift annuity. Instead, you select the window during which you can choose, at a later date, to begin receiving payments.