Charitable Gift Annuity
Why Give Through a Charitable Gift Annuity?
A Charitable Gift Annuity can be a meaningful option for donors who want to make a future charitable impact while creating a predictable income stream during their lifetime.
Potential Benefits of a Charitable Gift Annuity
- Bypass capital gains tax when funding the gift with appreciated assets
- Create a fixed income stream for yourself or for yourself and a loved one
- Simplify your estate
- Receive a charitable tax deduction now
- Create a permanent charitable legacy
Charitable Gift Annuity at a Glance
How it Works
- Establish the Gift Annuity
Work with your attorney, financial advisor, and Community Foundation Tampa Bay to determine whether a Charitable Gift Annuity aligns with your philanthropic and financial goals. The gift annuity is then established with an agreement between you and the Community Foundation.
- Fund the Gift Annuity
Transfer cash or appreciated assets to Community Foundation Tampa Bay.
- Receive Income Payments
The gift annuity provides fixed income payments to you or you and a loved one for life.
- Create a Lasting Charitable Impact
At the conclusion of the term of the gift annuity, the remaining assets are directed to charitable purposes through Community Foundation Tampa Bay, supporting the causes and organizations most meaningful to you.
How Kathleen Used a Charitable Gift Annuity to Create Her Legacy
Kathleen spent many years working as a financial planner. Although she and her husband are now retired, she remains well informed about developments in wealth planning. In early 2023, she learned of a provision in the tax law that would allow her to reduce income tax on the annual Required Minimum Distribution (RMD) from her Individual Retirement Account (IRA) while also making a substantial charitable gift.
Most of Kathleen’s household income comes from Social Security, a small pension, and other investments. To minimize income taxes, she withdraws only the required minimum amount from her IRA each year. The new provision—known as a Qualified Charitable Distribution (QCD)—allowed her to make a one-time charitable contribution of $50,000 directly from her IRA in exchange for a Charitable Gift Annuity (CGA). This QCD satisfied most of her RMD for the year and was not taxable to her.
Kathleen established her CGA with Community Foundation Tampa Bay. In return for her $50,000 gift, she now receives a fixed annual payment for the rest of her life, calculated based on her age at the time the gift was made.
Upon Kathleen’s passing, the remaining value of the CGA will be placed into a permanent fund she created at Community Foundation Tampa Bay. This fund will support two religious congregations and an international organization dedicated to assisting widowed individuals.
Ready to Make an Impact? Ask Max.
Our AI charitable planning assistant can help you compare gift options, understand potential benefits, and answer common questions as you consider the best way to support the causes you care about.
- Secure, expert-informed guidance to support your charitable planning
- Quick answers to common charitable giving and estate planning questions
- Interactive gift comparison tools to help you evaluate your options
Chat with Max™ now or connect with a member of our team below to start the conversation and learn more.
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