What is it?
A charitable gift annuity (CGA) is a planned giving vehicle through which an individual may enhance their secure income, save on taxes, and support Omicron Delta Kappa. The Society partners with the National Gift Annuity Foundation (NGAF) to administer the CGAs created to benefit O∆K.
How does it work?
Instead of entering an annuity contract with O∆K, donors contract with the NGAF and designates the introducing charity as the remainderman. The Society receives the full remainder at the donor’s death just as it would if O∆K were managing the annuity. The minimum CGA contract is $20,000, the maximum $250,000, and the minimum age to receive annuity payments is 55. CGA’s above $250,000 and non-cash gifts are considered on a case-by-case basis.
What is an example of the benefits?
Once a couple establishes a CGA with the NGAF, here is an illustration of how it might benefit them:
- Married couple, ages 75 and 72 and in the 24% tax bracket, make a $80,000 CGA gift of cash from their investment portfolio or other financial accounts
- Couple receives an immediate charitable tax deduction of $29,845, with no Adjusted Gross Income limitation, plus a 4.5% annuity (partially tax-free) at approximately $3,600 per year
- Payments for life, guaranteed by the National Gift Annuity Foundation
- The final residuum balance passes to NGAF and is then granted to your recommended charity(ies)
A single individual may also establish a CGA, and an illustration for one person is below:
- An individual age 72 in the 22% tax bracket makes a $100,000 GCA gift of cash
- The individual receives an immediate charitable tax deduction of $42,558, with no Adjusted Gross Income limitation, plus a 4.9% annuity
- The annuity payout would be $4,900 per year and would remain partially tax-free for about 14.5 years; after 14.5 years, the entire annuity will be taxed as ordinary income.
How can I help Omicron Delta Kappa by establishing a CGA?
At the time one establishes a charitable gift annuity, you may advise O∆K about how you would like the remainderman to be used. Below are some options.
- Directed to the unrestricted endowment which primarily funds scholarships
- Establish a circle-specific or another named scholarship
- Support leadership development programming including national conferences, virtual workshops, and campus-based activities
- Help preserve the historic Lexington train station which houses the National Headquarters
- Provide the gift of membership to prospective collegiate members with financial need
Would you like more information?
Contact Katy Datz, vice president for external relations, by phone (540)458-5344 or email [email protected].