Charitable Gift Annuity

Charitable Gift Annuity: How Payments Are Calculated, Part 2

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The two main factors to keep in mind when helping donors consider a CGA are 1) age and 2) number of annuitants.

Expressed as equations, they look like this:

1) O + F + L = B  

The Older the beneficiaries/annuitants, and the Fewer beneficiaries or annuitants, and the Lower the payout rate, the Bigger the overall tax benefits.