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Charitable Gift Annuity

You may be tired of living at the mercy of the fluctuating stock and real estate markets. A charitable gift annuity is a gift made to United Way of Santa Barbara County that can provide you with a secure source of fixed payments for life.

Charitable Gift Annuities (CGAs) create lifetime payments to the donor as well as tax saving. They can provide an income tax deduction the year the gift is made. They create capital gains tax savings when funded with appreciated assets. CGAs provide the joy of giving to a favorite cause.

Nonprofits who want to offer this popular planned giving option are required to have a CGA license issued by The State of California's Department of Insurance. This is an involved process, so only a small percentage of charities offer CGAs.

The charity's obligation to make the income payout is backed by the general assets of the charity.

Charitable Gift Annuity
Stock or Cash
Gift Annuity
Donor
UWSBC
Charity image

Benefits of a charitable gift annuity

  • Receive fixed payments to you or another annuitant you designate for life
  • Receive a charitable income tax deduction for the charitable gift portion of the annuity
  • Benefit from payments that may be partially tax-free
  • Further the charitable work of United Way of Santa Barbara County with your gift

2018 CGA RATE CHANGES

On April 24, 2018, the American Council on Gift Annuities (ACGA) Board approved an increase in the suggested maximum CGA rates which have been in effect since 2012. The new rates are effective July 1, 2018.

What impact does the suggested maximum CGA rate change have on donors?

The maximum suggested rate for a 79-year-old annuitant, which is the average age of an annuitant when a gift annuity is funded, will increase from 6.6% to 7.1%.

How a charitable gift annuity works

A charitable gift annuity is a way to make a gift to support United Way of Santa Barbara County.

  1. You transfer cash or property to United Way of Santa Barbara County.
  2. In exchange, we promise to pay fixed payments to you for life. The payment can be quite high depending on your age, and a portion of each payment may even be tax-free.
  3. You will receive a charitable income tax deduction for the gift portion of the annuity.
  4. You also receive satisfaction, knowing that you will be helping further our mission.

If you decide to fund your gift annuity with cash, a significant portion of the annuity payment will be tax-free. You may also make a gift of appreciated securities to fund a gift annuity and avoid a portion of the capital gains tax. Please contact us to inquire about other assets that you might be able to use to fund a charitable gift annuity.

Contact us

If you have any questions about charitable gift annuities, please contact us. We would be happy to assist you and answer your questions.

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