Marianne is a widow in her early 80s. She and her husband Richard both grew up in Seattle, and were married for more than 50 years before Richard passed away. Marianne has no children, and has always assumed that she would divide her estate between her two favorite charities.
It's very important to never promote gift annuities as investment vehicles or compare them to investment alternatives. The gift annuity is a gift that generates cash payments to a donor or others for life.
Strongly encourage benefactors to have the gift annuity transaction and related documents reviewed by their legal counsel.
It's an unfortunate fact that a significant number of charitable donors do not have a current will.
You can do your donors a service by bringing up the possibility of including your organization in their estate plan--simply for the fact that it's a way to remind them of the importance of having an up-to-date document.
A DPCGA offers potentially significant tax benefits to the donor, so the smart move is to make sure the donor's aware of it.
Most often, benefactors under the age of 70 will choose a charitable trust instead of a CGA. But every situation is unique.
There are a number of considerations that must be clarified and understood up-front by all parties involved. In terms of defining the specifics, here's what you need to know.
Ideal assets for a benefactor to use to fund a CGA with your organization.
Oh goodie—tax issues! Yay!
You're to be excused for sarcastically thinking that. Just know that there's a minimum of actual IRS gobbledygook involved in what follows, as the intent here is to lay out different factors for your consideration in the CGA planning stages.
Put simply, a Charitable Gift Annuity (CGA) is a great way for an older donor to accomplish these 5 goals.
Once you're in conversation about CGAs, there are several considerations you need to have in mind as you go forward in your communications.