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FAQ’s about CGA

Frequently Asked Questions about

Charitable Gift Annuities with Catholic Charities NY

A charitable gift annuity is a contract between an individual and Catholic Charities of the Archdiocese of New York. Where, in return for a gift, Catholic Charities of New York agrees to pay the individual a fixed amount of money annually for the donor’s lifetime. After the individual’s lifetime, the balance in the annuity account is given to Catholic Charities of New York as the donor’s gift and will support the mission of Catholic Charities of New York by solving the problems of New Yorkers in need, both non-Catholics and Catholics alike.

Catholic Charities of New York follows the rates set by the American Council on Gift Annuities, an independent nonprofit organization that recommends charitable gift annuity rates for use by charities nationwide. Life expectancy is one factor used in determining the rates. Therefore, older donors qualify for higher annuity rates compared to younger donors.

Charitable gift annuity payments are a general obligation of Catholic Charities of New York. Even if an individual charitable gift annuity account is exhausted, Catholic Charities of New York will still make annual payments for life to the annuitant. Catholic Charities of New York is a large and financially stable organization with extensive resources. It has never missed a payment to any annuitant.

A gift annuity can be based on one life alone, or two lives (husband and wife, for example).

The annuity rate for two beneficiaries is always lower than for any single annuitant.

Donors may use cash or securities (stocks, bonds, or mutual funds) or a combination of both.

Donating appreciated stock offers favorable capital gains treatment (see next question).

In the year that a donor establishes a gift annuity, he or she is eligible to claim a charitable contribution income tax deduction for that tax year. The deduction amount is equal to the present value of the gift amount that Catholic Charities of New York will receive at some time in the future. 

If the donor cannot use the entire deduction amount in the first tax year (because the deduction exceeds the amount of income that may be offset), the deduction may be carried forward for up to five years. Donors should always consult their own tax advisors before making a gift. Each payment is partially tax free for a number of years, a period measured by the donor’s life expectancy. After that period, the entire payment will be treated as ordinary income to the donor.

If the donor funds the gift annuity with appreciated securities (whose market value exceeds the cost basis) that have been owned for more than one year, a portion of the capital gains tax (that would be due if the donor sold the stock) is avoided. The rest of the capital gains tax is paid ratably (proportionally) over the donor’s life expectancy period.

The minimum age for a Catholic Charities of New York charitable gift annuity is 65.

The minimum gift amount is $10,000.

Catholic Charities of New York welcomes the opportunity to work with donors under the age of 65. Donors who are at least 50 years old may use a plan called the deferred charitable gift annuity. Under that plan, a donor chooses a future time to start his or her annuity payments (such as upon retirement or reaching age 65).

Leadership and Planned Giving staff at Catholic Charities of New York are available to help donors identify a program, fund, or project at Catholic Charities of New York that is meaningful to them.

You simply make a phone call to our Planned Giving Office and let us know of your desire to establish a Charitable Gift Annuity. We provide you with a detailed illustration showing: your personal payment rate, your income tax deduction for the year, and your capital gains tax savings.

To speak to a Catholic Charities of New York representative in confidence about a charitable gift annuity, please contact:

Emily Chau
Director of Planned Giving
646-794-2018
Emily.Chau@CatholicCharitiesNY.org

Yes, we are happy to provide an illustration at no charge based upon the information you provide us.

To speak to a Catholic Charities of New York representative in confidence about a charitable gift annuity, please contact:

Emily Chau
Director of Planned Giving
646-794-2018
Emily.Chau@CatholicCharitiesNY.org

Your name, date of birth (month, day and year), address, and amount with which you wish to fund the Charitable Gift Annuity. If you include your spouse or another person on your Charitable Gift Annuity, his or her information would be needed, as well. We will also ask you to indicate the date of your anticipated gift.

Yes. In fact, the longer you wait to receive payments, the higher your percentage will be, thus the higher your income will be.

Yes, but the IRS will not allow a dollar-for-dollar deduction, as you will be receiving a lifetime income.

You can use those funds, but the IRS will not allow you to simply roll those over into a Charitable Gift Annuity without paying your taxes on those monies since you will be receiving the tax deduction for the Charitable Gift Annuity.

If the Charitable Gift Annuity is in your name only, any remaining funds would go to Catholic Charities of New York. If you included a second person on your Charitable Gift Annuity, that person would continue to get the payments until his or her death. Any remaining funds would continue to support the mission of Catholic Charities of New York and its important work in providing help and creating hope for all New Yorkers.

Yes, you can.

To speak to a Catholic Charities of New York representative in confidence about a charitable gift annuity, please contact:

Emily Chau
Director of Planned Giving
646-794-2018
Emily.Chau@CatholicCharitiesNY.org

If you have any more questions about setting up a charitable gift annuity with Catholic Charities of New York, please contact:

Emily Chau
Director of Planned Giving
646-794-2018
Emily.Chau@CatholicCharitiesNY.org

Disclaimer: Information contained herein was accurate at the time of posting. The information on this website is not intended as legal or tax advice.

For such advice, please consult an attorney or financial tax advisor.