As we approach the end of the year, savvy donors are considering charitable gift annuities (CGAs) as a win-win strategy for supporting their favorite causes while securing a stable income stream.
A CGA is a contract between you and a charitable organization like The Foundation for Delaware County. You make a gift of cash or appreciated assets, and in return, the Foundation agrees to pay you (and/or another beneficiary) a fixed income for life.
You can fund your CGA using a Qualified Charitable Distribution (QCD) from your IRA. A QCD allows you to make a one-time transfer up to $53,000 from your IRA to fund a CGA for the benefit of either you or your spouse. The current environment of interest rates makes CGAs particularly attractive, as the payout rates for new CGA are correlated to interest rates. With the Fed potentially lowering interest rates, you will want to lock in a higher rate before year’s end when the rates will likely change.
For more information, call Monika Callins at 610-744-1015, or email mcollins@delcofoundation.org.
