Investing with Faith / Jolinda Moore

Understanding charitable gift annuities and how they can benefit you and others

Charitable gift annuities (CGAs) can sometimes sound too good to be true.

When speaking one on one with donors, you can almost see the question forming: “An organization is going to pay me income—for life? How does that work?”

As you walk through the details together, that initial skepticism often gives way to relief, and even a bit of excitement, once the simplicity and security of a CGA becomes clear.

In its simplest form, a charitable gift annuity is a contract between you and the archdiocese’s Catholic Community Foundation. In exchange for a charitable gift, we agree to make fixed payments to you, or to you and a loved one, for the rest of your life.

Payment rates are determined by the age or ages of the beneficiaries at the time the gift is funded. These rates are based on guidelines provided by the American Council on Gift Annuities, ensuring consistency and reliability.

A CGA can be an ideal option for individuals who value:

• Fixed, predictable income for life (currently 5.7% for a single 65 year old).
• Simplicity and peace of mind.
• A meaningful charitable impact.

It is especially attractive for donors who hold cash or appreciated property that currently produces little or no income.

Through a CGA, those assets can be transformed into a reliable income stream while also supporting the mission and ministries you care about most.

Another important and comforting aspect of a CGA is what happens at the end of an individual’s life. If the principal amount has not been fully paid out through the annual annuity payments, the remaining balance is distributed to the charity you choose. This designation is written directly into the annuity contract from the very beginning.

For many donors, this provides tremendous peace of mind. You know exactly how your gift will ultimately be used, ensuring your generosity continues to reflect your values and faith. In this way, a charitable gift annuity offers not only financial security during your lifetime, but also a lasting charitable legacy for the causes closest to your heart.

If you would like to discuss how a CGA aligns with your planned giving needs, contact the archdiocesan Office of Stewardship and Development at 317-236-1425 or e-mail ccf@archindy.org.
 

(Jolinda Moore is a member of SS. Francis and Clare Parish in Greenwood and serves as the executive director of the archdiocesan Office of Stewardship and Development and the Catholic Community Foundation. Tax or legal information provided herein is not intended as tax or legal advice. Always consult with your legal, tax or financial advisors before implementing any gift plan.) †