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The CGA: Give Back While Providing Security for Your Loved Ones

Posted on April 18, 2021
Family

Giving is one of life’s great satisfactions, especially when you know that your gifts help to improve the lives of others. Life income gift plans, including Charitable Gift Annuities (CGAs), can make an important difference for your loved ones and for Drexel University, too.

For example, when you establish a Charitable Gift Annuity (CGA) with Drexel, you can:

  • Provide for loved ones with guaranteed, fixed income
  • Enjoy an immediate charitable income tax deduction
  • Make an impact on the future of the college, school, department or program at Drexel University that means the most to you

What is a Charitable Gift Annuity?

A CGA is a contractual agreement between you and Drexel. In exchange for your donation of $10,000 or more, Drexel promises to pay a fixed dollar amount to one or two people for as long as they live (or for a set number of years, if you prefer). At the end of the contract, Drexel receives the remainder of the original gift and uses it for the purpose that you have designated.

At the time you establish your annuity, you may choose one or two people to receive the annuity payments. Usually, donors are the annuitants, but some donors give the right to receive income to someone else who needs a secure income, such as an elderly parent or college-age child or grandchild. The rate of payment varies with each annuity gift contract depending on ages of the people receiving payments, the number of annuitants, the timing of the gift, and the date payments begin.

Sample Rate Chart for a $10,000 Two-Life Annuity*

Annuitant Ages

65/65

70/70

75/75

80/80

85/85

Annuity Rate

3.8%

4.2%

4.6%

5.4%

6.5%

Charitable Deduction

$1,968

$2,626

$3,494

$4,027

$4,541

Annual Payment

$380

$420

$460

$540

$650

*assumes an IRS discount rate of 0.06%

To learn more about how a CGA can provide guaranteed income for life for you and your loved ones, contact David Toll, Senior Associate Vice President for Gift Planning, at 215.895.1882 or giftplanning@drexel.edu.

Posted in Gifts that Pay Back

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