There’s never been a better time to give through a charitable gift annuity.
A charitable gift annuity (CGA) is one of the unique giving vehicles WatersEdge offers for individuals and couples who want to impact Kingdom causes. The annuity allows you to both give and receive — delivering fixed income for life, immediate tax benefits, and a charitable gift to ministry. After your death, the remainder of your gift is passed on to the ministries of your choice. It’s a selfless gift to ministry with all the benefits of an investment.
Holly Blakey, WatersEdge Director of Donor Relations, has seen the flexibility that a CGA affords impact families time and again. “For many people on fixed incomes, or who are facing an imminent change in income, CGAs are a great option,” she said. “They can use an asset like a stock or proceeds from the sale of a property to fund a CGA and turn that asset into a regular and guaranteed income stream — and, of course, an ultimate gift to ministry. Cash also works well, and we see folks use a matured CD to fund their annuity and earn a much higher return than a CD.”
And CGAs just became even more attractive thanks to a recent decision by the American Council on Gift Annuities, which announced that their recommended gift annuity rates are increasing in January. The new rates will be released in December and are expected to increase approximately 0.4% for most donors. This means higher payout rates for CGA beneficiaries — more money for you and your loved ones.
Though the new rates are recommended to take effect in the new year, WatersEdge is honoring the expected increase immediately by adding 0.4% to the current rates. Those interested in opening a new CGA account won’t have to wait until January to experience this benefit and can contact the WatersEdge giving team today.
“The process is always simple, but the timing can differ based on how you’re funding the CGA,” Blakey says. “With cash or stocks, it could be very quick, with a payout in just a couple of weeks. If you have to sell property to fund the CGA or are making a Qualified Charitable Distribution from an IRA, may take a bit longer. We’ll walk the donors through each step to gather needed information and create the arrangements. Depending on when the agreement is signed, the first payout could be as early as the beginning of the next month.”
If you have questions about these new rates, don’t hesitate to contact our team of giving experts. For more general information on charitable gift annuities, click here. Looking to make a year-end gift to ministry? Download our giving tips sheet.
By Kedrick Nettleton