Has your organization considered offering charitable gift annuities, but has been hesitant due to the time, expense and risk of offering this gift option to your donors? Or, do you offer them but really don’t like the headaches that the administrative tasks can create? A new program through Charitable Giving Resource Center (CGRC) gives your organization the opportunity to offer charitable gift annuities to donors in a manner that is time and cost efficient and includes minimal risks.
WHAT ARE CHARITABLE GIFT ANNUITIES? (CGAs)
CGAs are contracts that nonprofits make with a donor whereby the donor contributes money, and the nonprofit agrees to pay that donor an annual income for life. The donor receives a partial tax deduction and cash flow for life. The charity receives the remainder of the amount donated when the donor dies.
To provide this gift option a nonprofit or community foundation would need to provide investment services and tax reports to the donor. This often deters nonprofits from offering charitable gift annuities. A nonprofit or community foundation can operate a CGA program by contracting it out to a service provider, such as a CGRC. CGRC uses the American Council on Gift Annuities to set the rates that guide annuity payments. These are set based on actuarial tables that predict the nonprofit will receive approximately half of the donor’s initial contribution.
The benefits of partnering with Charitable Giving Resource Center:
- Quickly begin offer charitable gift annuities
- No tax reporting duties or check writing required by your organization
- Receive technical support to educate donors
- Maintain donor relationships and reap the benefits of a planned gift
- Receive a turn-key program of text including sample ads, newsletter articles and letters
Give us a call to see how your nonprofit might benefit from this new service!
Chief Operating Officer
Charitable Giving Resource Center
4400 Westown Parkway, Suite 405
West Des Moines, IA 50266