Charitable Gift Annuities: A Deep Dive

Faculty: ACTEC Fellow Lawrence P. Katzenstein

Lawyers and other charitable planning advisors often overlook the charitable gift annuity (CGA) as a planning option. Perhaps that is because the CGA, unlike the charitable remainder trust, is not a creature of the Internal Revenue Code or perhaps because there is very little to draft. But because a CGA is not subject to the private foundation rules—and not subject to the detailed IRS charitable remainder trust rules—in some cases the CGA may be the best option for a donor wishing to support a charitable cause while securing lifetime income plus a charitable deduction. In exchange for transferring cash or other assets to a charitable organization, the donor receives a contractual promise from the charity to provide an annuity for life. A charitable deduction is available to the extent the value of the assets transferred to the charity exceeds the annuity’s actuarial value. A CGA provides both philanthropic and financial benefits, and the remainder of the gift helps fund the charity’s mission.

This concise, one-hour webcast provides a comprehensive overview of CGAs, including their structure, benefits, risks, and suitability for various clients. Using real-world examples, the program explores how CGAs can be an effective tool for charitable planning clients seeking meaningful ways to support their preferred charities. Gain the knowledge needed to identify when CGAs are a smart recommendation for your clients.