2023 UPDATE (SECURE ACT 2.0) - Section 307 of the Secure 2.0 Act allows a one-time rollover of $50,000 from an IRA to a Charitable Gift Annuity (CGA). CGAs create lifetime payments to the donor. Nonprofits who offer CGAs 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. United Way of Santa Barbara County has offered CGAs since 1984. If you have any questions about charitable gift annuities, would like a customized 2023 IRA to CGA rollover illustration or would like general 2023 IRA to CGA materials, please contact us.

Separately from the SECURE ACT 2.0, on January 1, 2023 CGA rates will be the highest they have been in over a decade. 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 to 7.4% www.acga-web.org/gift-annuity-rates-upcoming

Current charitable gift annuity (payments begin within one year). With a current gift annuity, you may transfer cash or property in exchange for our promise to pay you fixed payments beginning as early as this year. You will receive an income tax charitable deduction this year for the value of your gift to United Way of Santa Barbara County.

Deferred charitable gift annuity (for payments at future date). Perhaps you are not ready to begin receiving payments until a future date, such as when you retire. With a deferred gift annuity, you establish the gift annuity today, receive a charitable income tax deduction this year, but defer the payments until a designated date sometime in the future. Best of all, because you deferred the payments, your annual payment will be higher when the payments start than they would have been with a current gift annuity.

Flexible deferred charitable gift annuity (gives you flexibility as to when the payments will start). With a flexible deferred gift annuity, you retain the flexibility to decide when the annuity will begin making payments. As with a deferred gift annuity, you establish the annuity today and receive a charitable deduction this year, but the payments are deferred until such time as you elect to begin receiving the payments.