Charitable Gift Annuities

What can Legacy Global’s Charitable Gift Annuities do for you?

Legacy Global Foundation is a public 501(c)3 offering Charitable Gift Annuities and their benefits to donors thru financial professionals.

What is a Charitable Gift Annuity (“CGA”)?

A CGA is an annuity contract purchased from an authorized charity (such as Legacy).  The Donor secures a set income stream paid by Legacy for life.  The income stream and tax deduction are set based on the age of the Donor using tables and rates published by the American Council on Gift Annuities (ACGA) and the IRS.

CGAs are a powerful planning tool that can be a win-win-win for donors, charities, and advisors.  A CGA can fund a Family Foundation or substantially benefit a charity of the donors’ choosing.  A CGA can reduce or eliminate capital gains and estate taxes, create a guaranteed income, and generate dollars that may be used to fund life insurance in order to secure donors’ heirs.

What types of Charitable Gift Annuities are available?

  • Immediate Gift Annuity
  • Deferred Gift Annuity
  • Flexible Gift Annuity
  • College Gift Annuities

Guaranteed Benefits – Income.

Legacy insures the donor’s lifetime income benefit by purchasing a commercial annuity from a highly rated life insurance company.

Legacy protects the payments to the donor(s) by using a portion of the gift to purchase a single premium immediate annuity (SPIA), or equivalent, for the life of the donor(s).  Thus, a highly rated commercial insurance carrier “reinsures” the annuity payments made to the donor(s).

Guaranteed Benefits – Charitable Legacy.

Legacy guarantees the donor’s charitable remainder benefit by purchasing a life insurance policy or equivalent.  The benefit may pay to the annuitant’s Donor Advised Fund or Family Foundation.  This permits the donor the have some say, in an advisory capacity, as to how the charitable funds are used, and provides an excellent method of establishing a legacy.

Substantial Tax Deductions.

There are three primary ways in which a Legacy Global charitable gift annuity can assist a donor in tax management.

1). When transitioning the ownership of highly appreciated capital asset (marketable securities, real estate, business interests, etc.) to a charity in exchange for a CGA, the donor does not realize a lump sum capital gain distribution.

2).   A substantial immediate income tax deduction is given, which can be used to offset current income taxes up to a certain amount based on adjusted gross income.

3).  Transitioning an asset to a CGA removes the asset from the donor’s taxable estate, which can greatly reduce potential estate taxes.

Security for Heirs.

Legacy enables donors to secure their heirs and maximize the amount a donor can leave as a legacy to their heirs.

Legacy encourages donors to meet with their financial advisors to determine what legacy the donors wishes to leave to their heirs.