Fixed income payments for life combined with a gift to charity!
A Charitable Gift Annuity (CGA) with MB Foundation is a simple arrangement that involves a charitable gift and an annuity. You make the gift to the ministry(ies) of your choice (part of which is tax deductible), and then you receive fixed annuity payments each year for the remainder of your life. If you wish, you can have the payments go to a family member or friend instead. You may also defer your payments till a date in the future to enhance retirement income.
ADVANTAGES OF A CGA
- Simplicity. It’s easy to arrange. Gifts of cash and/or securities involve a very simple procedure. The gift of a personal residence or other real estate will involve an appraisal and a transfer deed but the process is simple if assisted by MB Foundation.
- Security. Receive fixed payments for as long as you live. The life income is secured by the financial condition of MB Foundation. We have never missed an annuity payment.
- Savings. An immediate income tax deduction is available for a portion of the amount you give and a portion of the fixed income is tax free for the duration of your projected life expectancy.
- Satisfaction. You have the satisfaction of knowing that a portion, and perhaps all of your gifts, will upon your decease be made available to benefit those charities that you value highly and have specified to be the remainder beneficiary.
HOW MUCH INCOME WILL I RECEIVE?
It depends on one’s age, and whether it’s a one life or a two life annuity, or an annuity where the first payment has been deferred for a term of years. If you choose to defer the first payment, the rate of return would be significantly higher when the payments begin. The American Council on Gift Annuities recommends the rate. Most charitable organizations, including MB Foundation, follow the rate guidelines as recommended.
*Based on current American Council on Gift Annuity rates, rates effective as of January 1, 2024. *Deductions will vary with the IRS discount rate at the time of your gift. Assumed rate is 4.6%. *Not intended as tax or legal advice, please consult your personal tax advisor.
Use our CGA Calculator to calculate your payout rate based on your age and value of your annuity.
THE PROCESS
1. Complete a simple application form.
2. Make the gift. If cash, it’s as simple as writing a check. If the gift is in the form of marketable securities (stock, bonds, etc.), a formal transfer of the asset will be necessary. The minimum gift is $10,000.
Download a CGA flyer for more information or contact us to see if a CGA is right for you.
“My CGA provides nice income for me now and one day it will support the ministries I believe in.”
Miriam Sommers
Dallas, TX