Charitable Gift Annuities

What is a CGA?

There are many ways you can support your favorite causes through the Community Foundation. Giving through a Charitable Gift Annuity (CGA) is unique in that it allows you to arrange a generous gift to your community while providing you with a new income source you can count on for the rest of your life.

CGAs can be set up by those who are 60 or older. When you establish a CGA at the Community Foundation, the rate of payment is based on the beneficiary’s age.  Payments can either begin immediately or be deferred for additional benefits.  These gifts can be created with cash or securities of $10,000 or more.  Some of the benefits you will enjoy with a CGA at the Community Foundation include: 

• A lifetime of fixed payments, part of which are tax-free, for you or a loved one
• A federal income tax deduction, as well as income and capital gains tax savings  
• Payments can be immediate or deferred
• Easier to establish and less complex than a trust
• Professional investment management provided by PNC
• Residuum will be directed to the charitable causes identified by you 
• Lancaster County Community Foundation handles all administrative details including creation of contract, issuing of quarterly payments and annual tax documents

Thinking about donating through a CGA? Try our interactive calculator to see the impact your gift could make- and the annual income it could provide you.

Charitable Rollover Gift Annuity

As of January 1, 2023, donors who are 70 ½ or older can now make a Qualified Charitable Distribution (QCD) in exchange for a charitable gift annuity. Please be aware of the rules and limitations:

• The transfer is a once per lifetime opportunity, up to $50,000 within a single year.
• If both Spouses have an IRA, each can contribute up to $50,000 to establish one single joint-life charitable gift annuity for $100,000.
• The entire payment you receive from your charitable gift annuity will be subject to income tax.
• There is no income tax deduction for this contribution, although there is no tax on the QCD either.

There are many ways you can support your favorite causes through the Community Foundation. Giving through a Charitable Gift Annuity (CGA) is unique in that it allows you to arrange a generous gift to your community while providing you with a new income source you can count on for the rest of your life.