A charitable gift annuity provides a fixed lifetime income payment for your donor, or to one or two life income beneficiaries (annuitants) they may choose to designate. After the death of the annuitant(s), the remainder of the gift goes to your organization as the designated charitable beneficiary.

Friends Fiduciary will issue the CGA and allow your donor to designate your organization as the charitable beneficiary. As the issuer of the annuity, Friends Fiduciary bears responsibility for:

• Preparation and distribution of all annuity payments
• Investment of the gift assets
• Donor’s tax benefit calculations and annual tax forms
• Liability for all future annuity payments
• Annual calculation of the required state reserves
• Registration and annual reporting in all states where required
• Termination calculations and payout of the remainder upon the death of the annuitant

Charitable Gift Annuities carry no direct fees for your organization or donors. Friends Fiduciary charges the CGA asset pool an annual administrative fee, in addition to investment and bank fees. At the time of termination, Friends Fiduciary retains 10% of the remainder to support the actual expenses and future payment liabilities of the Charitable Gift Annuity program.

Charitable Remainder Trusts

For gifts of $250,000 or more, your donor may establish a Charitable Remainder Trust. Charitable Remainder Trusts provide a fixed or variable annual income depending on the type of trust. Upon the death of the last income beneficiary, the balance of the trust’s assets is given to your organization as a designated charitable beneficiary. If your donor is interested in having Friends Fiduciary serve as trustee for a charitable trust, please contact us for more information.

Illustrations

Friends Fiduciary can provide illustrations, calculations and information to your development staff or directly to your donors. Please contact Melissa Stoner, our program director, or direct your donors to our online gift calculator.