Charitable Gift Annuity
A Charitable Gift Annuity (CGA) is a way to make a meaningful charitable gift while enjoying income and tax benefits. It's a contract between you and the Community Foundation of Louisville. You irrevocably transfer money, securities, or other property to the Community Foundation. You (or another person) then receive a guaranteed fixed payment every year during your lifetime, and the remainder creates or adds to your fund at the Community Foundation of Louisville to support your personal charitable passions.
Benefits of a Charitable Gift Annuity
- Receive fixed payments to you or another annuitant you designate for life
- Receive a charitable income tax deduction for the charitable gift portion of the annuity
- Benefit from payments that may be partially tax-free
- Enhance your charitable legacy by directing the remainder of your gift annuity to the Community Foundation of Louisville
How a Charitable Gift Annuity works
A Charitable Gift Annuity is a contract between you and the Community Foundation of Louisville.
- You transfer cash or property to the Community Foundation of Louisville.
- In exchange, we sign an annuity contract and promise to pay fixed payments to you or another annuitant you designate for life. The annuity rate paid varies depending on your age and the starting date of the annuity payments.
- You will receive a charitable income tax deduction for the gift portion of the annuity.
- You also receive satisfaction, knowing that you will be helping further your charitable legacy.
If you decide to fund your gift annuity with cash, a significant portion of the annuity payment will be tax-free. You may also make a gift of appreciated securities to fund a gift annuity and avoid a portion of the capital gains tax. Please contact us to inquire about other assets that you might be able to use to fund a Charitable Gift Annuity.
Contact us
If you have any questions about charitable gift annuities, please contact us. We would be happy to assist you and answer your questions.
Additional Information
Current Charitable Gift Annuity (payments begin within one year). With a current gift annuity, you may transfer cash or property in exchange for our promise to pay you fixed payments beginning as early as this year. You will receive an income tax charitable deduction this year for the value of your gift to the Community Foundation of Louisville.
Deferred Charitable Gift Annuity (for payments at future date). Perhaps you are not ready to begin receiving payments until a future date, such as when you retire. With a deferred gift annuity, you establish the gift annuity today, receive a charitable income tax deduction this year, but defer the payments until a designated date sometime in the future. Best of all, because you deferred the payments, your annual payment will be higher when the payments start than they would have been with a current gift annuity.
Flexible deferred Charitable Gift Annuity (gives you flexibility as to when the payments will start). With a flexible deferred gift annuity, you retain the flexibility to decide when the annuity will begin making payments. As with a deferred gift annuity, you establish the annuity today and receive a charitable deduction this year, but the payments are deferred until such time as you elect to begin receiving the payments.