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Should Your Retirement Plans Include a CGA?

Almost 30 years ago, WOC leaders made sure that donors across West Ohio knew about the benefits of establishing a Charitable Gift Annuity (CGA) with the Council on Development (now the Foundation). As a result of that effort, today the UMFWO is pleased to partner with dozens of committed United Methodists in our conference who chose to increase income in retirement while also supporting a United Methodist cause.

In addition to retirement income, other uses for a CGA include helping an elderly parent or loved one who needs supplemental support, or helping a student with tuition.

Here’s how a CGA works: complete a CGA contract with the Foundation with an initial minimum gift of $5000 in cash or securities. Per the agreement, the Foundation will pay the annuitant (and a survivor annuitant, if desired) a fixed income for life. Quarterly payments are calculated by age of the annuitant(s) and the amount of the gift; and payments begin promptly with the next quarterly cycle. Upon the death of the annuitant and survivor annuitant, any remaining assets are transferred to the donor’s specified beneficiary: a church, ministry, or mission of the West Ohio Conference.

CGA donors benefit from an income tax deduction equal to the present value of the future gift to the charity. Payments from the CGA are usually taxable at rates that vary based on how the gift is made.

Making a legacy gift in this way is an efficient process involving a one-page application, which takes a few minutes to complete and can be accomplished via mail, a short visit to the West Ohio Conference office, or a visit to your home or office by Foundation staff.

Should your retirement plans include a CGA? It’s a tax-friendly way to make a gift to charity that creates an income for the annuitant, and ultimately benefits the Church. Contact the Foundation office at info [at] umfwestohio.org or call 380-223-9339 to learn more.