Creating a Charitable Gift Annuity (CGA) with a cash contribution is a straightforward way to support California Institute of the Arts while securing payments for life. For many donors, funding a CGA with cash offers both financial stability and the satisfaction of making a lasting impact. Here’s how it works and what you can expect.
What is a Charitable Gift Annuity?
A Charitable Gift Annuity is a simple contract between you and California Institute of the Arts. You donate cash, and in return, California Institute of the Arts agrees to make fixed payments to you for life. Your payment amount is determined by your age at the time of the gift and does not change over your lifetime, providing reliable income regardless of market fluctuations.
Key Benefits of Funding a CGA with Cash
- Fixed Lifetime Payments
You receive fixed payments for life, providing financial security, especially if you are a retiree looking for stable income. Typically, a portion of each annuity payment is tax-free for many years. This can enhance the financial benefit of your gift. - Charitable Deduction
You receive an immediate income tax charitable deduction for a portion of your cash gift, subject to IRS limitations. You may carry forward any unused deduction for up to five additional years. - Meaningful Impact
Your cash contribution to a CGA supports the mission and work of California Institute of the Arts. It’s a way to give back in a meaningful way, ensuring that your legacy advances a cause you care about. - Ease of Setup
Cash-funded CGAs are simple to establish. They do not involve the complexities associated with some other assets, such as appreciated securities or real estate. You can complete the process efficiently with the help of California Institute of the Arts's gift planning team.
Consult with Your Advisors
A Charitable Gift Annuity funded with cash is a powerful way to secure fixed payments for life and tax benefits while supporting the values and work of California Institute of the Arts.
Before you fund a Charitable Gift Annuity, however, we encourage you to speak with your financial and tax advisors about your plans.
Next Steps
If you would like to explore establishing a CGA with cash or other assets, please contact us. We can provide you with information tailored to your needs, including the current annuity rates, potential tax benefits, and the long-term impact of your gift.
Thank you for considering a generous gift to help sustain California Institute of the Arts.