A Charitable Gift Annuity (CGA) is a contract (not a trust), under which AIER, in return for a transfer of cash, marketable securities or other assets, agrees to pay a fixed amount of money to one or two individuals, for their lifetime, not a term of years. Annuity payments are fixed and unchanged for the term of the contract. The contributed property, given irrevocably, becomes a part of the charity’s assets, and the payments are a general obligation of the charity, meaning that the annuity is backed by the charity’s entire assets, not just by the property contributed. The donor must be first annuitant, but can also name a second annuitant. CGA’s may offer immediate or deferred payouts.
AIER’s CGAs may be one of the following two types:
- Immediate Annuities: Contracts that pay a current fixed annuity payment to a donor.
- Deferred Annuities: Contracts that pay a future fixed annuity to a donor, with the initial payment to be made at least one year (or longer) after the AIER receives the donated property. The deferral period will be at the discretion of the donor.
The fair market value of property contributed in exchange for a gift annuity must be at least $5,000. Transfers of cash or publicly traded securities are strongly preferred for AIER’s CGAs, though an AIER CGA also may be issued for other transferred property, subject to AIER’s gift acceptance policies. Donations of securities shall be valued for CGA purposes at the average of the high and the low of their trading range on the date that the property is received by AIER. Closely held stock will not be accepted. Transferred property shall not be subject to any mortgage or other security interest. AIER CGAs may not be available in all states.
AIER CGAs are limited two annuitants. AIER will accept annuity gifts for one life, two lives in succession, or joint and survivor annuity agreements. Each annuitant must be at least 55 years of age on the date the CGA is issued unless a deferred charitable gift annuity with the first payment when the donor is at least 55 years of age. The donor shall be the first (or primary) annuitant. The annuity rate payable to the annuitant(s) shall be firmly established at the time of the issuance of the annuity, and generally shall be the Uniform Gift Annuity Rate in effect on the annuity issue date as promulgated by the American Council on Gift Annuities.
AIER maintains segregated gift annuity investments that are not part of any other AIER investment or funds. At least 50% of the annuity gift are held in the gift annuity fund of the institution and are maintained until the demise of the last annuitant in the agreement.
Call the Planned Giving Office at 413-528-1216 x3153
or email [email protected] for more information.