What is a Charitable Gift Annuity?
A Charitable Gift Annuity (CGA) is a gift structured to provide income for the donor and possibly a secondary beneficiary. The annuitant, the person investing funds, receives a contract or agreement stating that Denver Botanic Gardens will pay the annuitant a fixed income for life with payments to start immediately or at some set future time. A CGA is at least $100,000 and the payout on the annuity is based on the age of the beneficiary, where the older the beneficiary, the higher the rate. A CGA is attractive to donors who want to support the Gardens but need income while they are still alive.
What are the Benefits of a Charitable Gift Annuity?
- The donor receives a charitable tax deduction in the year of the gift based on the estimated future gift value.
- Often increases the donor’s annual income.
- Probate or court involvement is avoided on this gift.
- The income paid under the annuity is well-secured by the assets of the Gardens.
- A gift of appreciated assets, such as stock, enables the donor to delay capital gains taxes.
What are types of Charitable Gift Annuities?
- Single life – the Gardens pays lifetime income to one person; the donor must be 65 or older.
- Two lives – the Gardens pays lifetime income to two people; the amount remains the same until the last beneficiary dies; the donor must be 65 or older.
- Deferred – The Gardens will begin paying the annual amount at a specified date in the future; this is attractive for retirement planning as the annual amount will be much greater if the payment is deferred to a later date; minimum age is 50, with the first payment due at age 65.
For more information about charitable gift annuities, please contact us:
Director of Development
Denver Botanic Gardens, Inc.
Tax ID Number