Charitable Gift Annuities

A charitable gift annuity (CGA) is a favorite giving vehicle among donors–it is the gift that pays you income.  When you create a gift annuity, the funds are invested and income is paid out annually to you. When you pass, Columbia Land Trust receives what is left in the fund and your charitable impact extends beyond your lifetime.  

CGAs are popular because of their simplicity, fixed payment streams, and favorable tax treatment. CGAs can be written for smaller, inaugural gifts of cash and securities or for larger, more substantial, non-cash donations of real estate and small business assets. The payout rates are set by the American Council on Gift Annuities, of which over 2,000 nonprofits across the U.S. are members.  

In addition to providing a solid rate of return, CGAs offer appealing tax treatment. At the time the initial funding of the annuity is made, you qualify for a substantial tax deduction. Plus, a part of the income received each year is tax-free. CGAs can receive further advantageous tax treatment if funded with an appreciated asset, such as stock, real estate, or a business interest.