Planned Giving
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 AIUSA. In exchange for your irrevocable gift of cash, securities, or other assets, Amnesty agrees to pay one or two annuitants you name a fixed sum each year for life. AIUSA 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 Amnesty, and backed up by a segregated reserve account. Minimum initial gift is $10,000.
Different Types of CGAs
There are two 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.
What Are the Advantages?
It costs nothing to set up a CGA.
Relatively small amounts can be contributed to a CGA.
Your Income payments are fixed and guaranteed by the assets of AIUSA.
CGAs pay relatively high rates determined by your date of birth. Currently, rate go as high as 11.3% at age 90+ years.
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.
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.
How Do I Set Up A CGA?
It's easy. Read AIUSA's Disclosure Statement, then just email the Amnesty Planned Giving Office, or complete the personal illustration form. We will prepare a gift annuity contract and help you transfer your assets to Amnesty. The assets will be valued on the official date of transfer and Amnesty will pay you or your designated annuitant(s) the agreed-upon percentage in the contract as a fixed income payment for life.
Read AIUSA's Disclosure Statement (in PDF)