Charitable Gift Annuities

What is a Charitable Gift Annuity?
One of the oldest and simplest life-income arrangements, a CGA is a simple contract between you and World Vision. In exchange for your irrevocable gift of cash, securities, or other assets, World Vision agrees to pay one or two annuitants you name a fixed sum each year for life. World Vision Gift Annuity payments are based on the rates recommended by the American Council on Gift Annuities and are not meant to be competitive with commercial annuities. The payments are guaranteed by the general resources of World Vision, and backed up by a segregated reserve account. Minimum initial gift is $5,000.

Different Types of CGAs
There are three basic types of CGAs, and they each meet different needs.

Immediate Payment: With this type of gift annuity, your payments begin as soon as the contract takes effect. For example, if you elect quarterly payments, payments begin at the end of the quarter in which you make your gift. Annuitants must be age 65 or older.

Deferred Payment: This option allows younger donors and annuitants to defer the start of payments until they have reached retirement age. Like an immediate payment gift annuity, you can take a charitable deduction in the year you make your gift. Because payments are deferred, however, you or your designated annuitants will receive substantially higher income payments later.

Flexible Payment: This option allows you and your designated annuitants to elect to start receiving payments on any one of a range of dates beginning at least one year after your gift. These dates and their corresponding payment amounts must be listed in your agreement.

What Are The Advantages?

1. It costs nothing to set up a CGA.
2. Relatively small amounts can be contributed to a CGA.
3. Your income payments are fixed and guaranteed by the assets of the Charity.
4. CGAs pay relatively high rates. Currently, rates go as high as 12%.
5. You will be entitled to take a charitable income tax deduction for the gift portion of your annuity in the year you make your gift, with up to 5 additional years to take any unused deduction. By electing an annuity rate lower than that designated by the American Council on Gift Annuities, you can increase both your charitable tax deduction and your ultimate gift to World Vision.
6. You will pay capital gains tax only on the projected income benefit from your gift. If you name yourself as an income beneficiary, your reduced capital gains tax liability will also be spread out over the life of the contract.

EXAMPLE (based on 6.0% IRS discount rate)
You donate $10,000 of appreciated stock, originally purchased for $2,500, to a Charitable Gift Annuity with payments to begin immediately:

.	Age 70	Age 75	Age 80
Annuity Rate	7.2%	7.9%	8.9%
Annual Payment	$720	$790	$890
Charitable Deduction*	$3,745	$4,158	$4,601

How Do I Set Up A CGA?
It’s easy. Read World Vision's Disclosure Statement, then just email the World Vision Gift Planning Department, or complete the personal illustration form. We will prepare a gift annuity contract and help you transfer your assets to the Charity. The assets will be valued on the official date of transfer and the Charity will pay you or your designated annuitant(s) the agreed-upon percentage in the contract as a fixed income payment for life.

Gifts of Other Assets

How to give other assets, such as: Retirement Plans, Real Estate, Closely-Held Stock, Partnership Interests, Tangible Personal Property, and Life Insurance.