Gifts That Pay You Income

Charitable Gift Annuities (CGAs) are a great way to make a lasting difference for ministries while receiving tax-favorable income for you, your spouse and your children. Many supporters prefer charitable gift annuities because of their attractive payout rates and their significant impact.

Charitable Gift Annuities

Charitable Gift Annuities (CGAs) are a great way to make a lasting difference for ministries while receiving tax-favorable income for you, your spouse and your children. Many supporters prefer charitable gift annuities because of their attractive payout rates and their significant impact.

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Charitable Remainder Trusts

Income for life for you and your family while reducing your taxes. By using assets or cash to fund the trust, you receive income and an income tax credit the year in which you transfer your assets. The remaining portion of the trust, after all payments have been made, comes to you.

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Case Study: A $1,000,000 Charitable Gift Structured for Income, Impact, and Stability

At Global Investment Strategies, we work with donors who want to make meaningful charitable contributions while also maintaining long-term financial security. This case study reflects a recently completed donor arrangement, demonstrating how a properly structured charitable gift can support both the donor and the nonprofit.

The Donors

A couple, ages 69 and 70, wanted to contribute $1,000,000 to a national nonprofit they have supported for many years.

Their primary objectives were:

To create future retirement income
To make a meaningful current impact
To ensure the nonprofit maintained financial responsibility and compliance

The Strategy

The gift was structured using a Charitable Gift Annuity (CGA) framework, combined with a disciplined allocation approach designed to balance immediate use, reserves, and future income.

1. Immediate Charitable Impact — $500,000

The nonprofit allocated $500,000 directly toward its programs and mission.
This allowed for immediate deployment of capital to support ongoing initiatives.

2. Reserve and Compliance Allocation — $161,000

Approximately $161,000 was allocated to a reserve structure, supported by an accumulation annuity.
This component helps the nonprofit:
Meet applicable state reserve requirements
Maintain financial stability
Support long-term obligations associated with the arrangement

3. Lifetime Income Component — $339,000

The remaining $339,000 was used to secure a future income stream for the donors.
Income is scheduled to begin at approximately age 75/76
Expected annual income: approximately $39,500, payable for the joint lifetime of the donors

The Outcome

This structure allowed the donors to:

Make a significant charitable contribution today
Establish a predictable income stream for retirement
Support a nonprofit operating with financial discipline and planning

At the same time, the nonprofit benefited from:

Immediate funding for its mission
A structured reserve approach supporting compliance
A balanced method of managing long-term obligations

Key Takeaway

Charitable Gift Annuities can be structured to support both donor goals and nonprofit sustainability when designed carefully and in alignment with regulatory and financial considerations.

Important Information

This case study is based on an actual client scenario; however, certain details have been generalized for privacy. Payment amounts, tax benefits, and outcomes vary based on individual circumstances, timing, and applicable rates. Charitable Gift Annuities are contractual obligations of the issuing nonprofit and are not FDIC insured. This material is provided for informational purposes only and should not be considered tax, legal, or investment advice.

CGA Planning

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