CGAs for Seniors | The Institute for Creation Research

CGAs for Seniors

The American Council on Gift Annuities recently authorized a small rate decrease for charitable gift annuities offered by nonprofits. The change was necessary for two reasons: 1) interest rates remain exceptionally low, and 2) most importantly, people are living longer and may outlive their savings. But with a healthy economic outlook and the stock market soaring, this is an excellent time for seniors age 65 or older to consider protecting their assets with guaranteed income payments through ICR’s Charitable Gift Annuity (CGA) program.

CGAs are planned giving instruments that involve a simple contract between ICR and the donor. Unlike other financial arrangements, these special annuities offer additional benefits unmatched by other secure investments such as certificates of deposit, savings accounts, and commercial annuities. In exchange for a gift of cash or stock, ICR provides a partial income tax deduction and a guaranteed fixed-income stream for life, a portion of which is paid out tax-free.

The fixed-income amount is determined by several factors, the donor’s age playing the biggest part. The older you are, the higher the rate—just one of many benefits to growing older! CGAs can be written for either an individual or a couple, and payments can begin immediately or be deferred to some future date. Once the donor passes, the remainder of the gift is applied to ICR’s ministry.

Charitable gift annuities could be right for people who desire to do any of the following:

  • Increase cash flow over low-interest rates in CDs and other fixed-income investments
  • Secure fixed-income payments unaffected by fluctuating interest rates and stock prices
  • Avoid capital gains tax on appreciated stock or mutual funds while generating more predictable income
  • Gain peace of mind knowing payments for a surviving spouse will continue without the delay of probate
  • Help an elderly parent, sibling, or other person in a tax-advantaged manner

For seniors, CGAs simply provide the highest available guaranteed returns. When both the income tax deduction and the tax-free payment portion are taken into account, the overall effective rate can be considerable. The accompanying chart offers examples based on a $10,000 gift and current applicable federal rates with immediate payments.

If you’d like to support our ministry but still need ongoing income, please prayerfully consider a gift annuity with us. ICR requires a minimum gift of $10,000 and can only offer CGAs to people 65 or older (or deferred until 65). Contact us at 800.337.0375 or stewardship@icr.org and provide your name, birth date, state of residence (not all states qualify), and the gift amount you’re considering. We’ll be happy to design a customized proposal just for you.

* Mr. Morris is Director of Operations at the Institute for Creation Research.

Cite this article: Henry M. Morris IV. 2020. CGAs for Seniors. Acts & Facts. 49 (2).

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