Charitable Gift Annuity

The Attic Angel Charitable Gift Annuity (CGA) is an estate-planning option that mixes the benefits of being able to make a significant gift with the security of a lifetime income.

A CGA is a simple contract between a donor and Attic Angel Association that supports the Attic Angel mission and provides partially tax-free annuity payments to the donor and/or a beneficiary, along with other appealing tax features for the donor.

The amount of your annuity payment depends on the size of your gift and your age. The larger your gift and the older you are, the more you will receive and the greater your tax deduction will be. Charitable gift annuities are irrevocable.

The Attic Angel Charitable Gift Annuity Program requires a minimum initial contribution of $10,000, and the donor must be at least age 60. CGAs can be set up to provide annuity payments for one person or for two people.

A qualified CGA is not insurance under the laws of this state and is not subject to regulation by the Wisconsin Commissioner of Insurance, nor is it protected by an insurance guaranty fund or an insurance guaranty association.

The current CGA rates, as set by the American Council on Gift Annuities (ACGA) in January 2012, were reviewed and renewed as of April 2015:

One Life

Age Rate
60 4.4%
65 4.7%
70 5.1%
75 5.8%
80 6.8%
85 7.8%
90+ 9.0%

Two Lives

Age Rate
60/65 4.0%
65/70 4.4%
70/75 4.8%
75/80 5.3%
80/85 6.1%
85/90 7.3%
90/95 8.8%

 Example:

  • Mrs. Bee, age 70, purchases a $10,000 CGA with cash. The rate on her annuity will be 5.1%.

  • She receives an immediate charitable deduction of $4,002 in the year of purchase.

  • Her annual annuity payment will be $510, with a tax-free portion of $377 and ordinary income of $133.

  • After 15.9 years, the entire annual annuity payment is taxed as ordinary income.

  • The annual payment of $510 will remain constant during Mrs. Bee’s lifetime – no changes in payments, regardless of how the economy ebbs and flows. Upon the donor’s death, any remaining funds go to Attic Angel Association to address critical needs at the time the gift is received, in accordance with the mission.

For more information, call us at 608-662-8901.

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