Charitable Gift Annuity
A charitable gift annuity is a great way to give a gift to support the community and causes you care about. You make a gift of cash or stock to the Quad Cities Community Foundation. In return, we will make payments for life to you, you and a loved one, or another person. Each payment will be fixed and the amount of each payment will depend on the age of the person who receives the payments. After all payments have been made, we will distribute the remaining value of your gift to the endowment fund of your choice to support the causes close to your heart.
Benefits of a charitable gift annuity
- The ability to make a meaningful gift to support a charitable organization doing important work.
- A charitable gift annuity contract is easy to understand and complete.
- The ability to receive fixed income for life for you or your loved one (up to two people).
- The opportunity for some tax-free income.
- An immediate income tax deduction (for those who itemize deductions).
- Capital gains tax liability may be spread over life expectancy for the donor, or in the case of a donor funding a gift annuity for a non -spouse, the donor may owe all capital gains on the gift portion in the year the CGA is funded.
How a charitable gift annuity works
A charitable gift annuity is a contract between you and Quad Cities Community Foundation.
- You transfer cash or property to Quad Cities Community Foundation.
- In exchange, we sign an annuity contract and promise to pay fixed payments annually for life to you or for up to two lives you designate. The payments are calculated depending on your age, and a portion of each payment may even be tax-free. You may also receive a tax deduction.
- After your lifetime, the remaining value of your gift goes to the endowment fund of your choice.
If you decide to fund your gift annuity with cash, a significant portion of the annuity payment will be tax-free. You may also make a gift of appreciated stock to fund a gift annuity and avoid a portion of the capital gains tax. Please contact us to inquire about other assets that you might be able to use to fund a charitable gift annuity.
If you have any questions about charitable gift annuities, please contact us. We would be happy to assist you and answer your questions.
Current charitable gift annuity (payments begin within one year). With a current gift annuity, you may transfer cash, appreciated stock, or property in exchange for our promise to pay you fixed payments beginning as early as this year. You will receive an income tax charitable deduction this year for the value of your gift to Quad Cities Community Foundation.
Deferred charitable gift annuity (for payments at future date). Perhaps you are not ready to begin receiving payments until a future date, such as when you retire. With a deferred gift annuity, you establish the gift annuity today, receive a charitable income tax deduction this year, but defer the payments until a designated date sometime in the future. Best of all, because you deferred the payments, your annual payment will be higher when the payments start than they would have been with a current gift annuity.
Flexible deferred charitable gift annuity (gives you flexibility as to when the payments will start). With a flexible deferred gift annuity, you retain the flexibility to decide when the annuity will begin making payments. As with a deferred gift annuity, you establish the annuity today and receive a charitable deduction this year, but the payments are deferred until such time as you elect to begin receiving the payments.