Coming This Summer: CGA Rates are Going Up!
June 7, 2022
Like most nonprofit organizations, Drexel University follows the recommendations of the American Council on Gift Annuities (ACGA) for setting the payout rates for charitable gift annuities (CGAs), and there is big news: as of July 1, 2022, CGA payout rates will be increased by 0.4 to 0.6 percentage points (based upon the annuitant's age). For a $20,000 single life CGA, the annual fixed payment may increase by as much as $120.
A CGA offers you the opportunity to make a gift to Drexel or the College of Medicine and receive guaranteed, fixed income payments in return for the rest of your life! And, if you itemize deductions on your federal income tax return, you can claim an immediate charitable tax deduction for a portion of your gift. When your CGA terminates, the remainder of your gift will be used to support whatever program or department you designate.
Your CGA payments can begin immediately or, if you’d prefer to wait, can be deferred to a future date that you choose. You may also establish a 2-life CGA that will provide lifetime income for your spouse after your death, or even name another income beneficiary, such as an elderly parent or a college-age child.
A CGA might be the right charitable giving choice for you is any of these situations apply to you:
The July 1, 2022 increase in CGA payout rates makes this summer the ideal time to take advantage of this flexible, mutually-beneficial option in charitable giving. To learn more, contact David Toll, Senior Associate Vice President for Gift Planning, at (215) 895-1882 or firstname.lastname@example.org.
- The interest rate on a CD or other fixed-income investment is low and you would like to increase your cash flow.
- You own appreciated stock or mutual fund shares, have considered selling some of the shares and reinvesting the proceeds to generate more income, but don't want to pay tax on the capital gain.
- You would like fixed payments that are unaffected by interest rates and stock prices and which you cannot outlive.
- You want to assure the continuation of payments to a loved one after your death without the delay of probate proceedings and in a tax-efficient manner