Three Advanced CGA Applications The Now-N-Later Impact CGA, Testamentary Stretch IRA CGA and Crypto CGA
Gift annuities are the oldest, simplest and most popular life income giving vehicle (there are more gift annuities than all other split interest gifts combined!). But that doesn’t mean they can’t provide solutions to complex assets or planning goals. In the last 12 months, our team has seen the following three advanced planning applications.
#1 The Now-N-Later Impact CGA:
This unique application provides a way for your donors to have an immediate impact and leave a deferred legacy. The donor designates your charity to receive the first three to five years of payments to satisfy their Campaign or major gift pledge. Thereafter, they enjoy the advantage of the annuity payments for life. On termination of the annuity at death - or earlier through a timed life income revocation - the residuum again supports your organization.
#2 The Testamentary Stretch IRA CGA:
The SECURE Act of 2019 killed the very popular “Stretch IRA,” but for charitably-inclined donors, the Testamentary Charitable Gift Annuity (T-CGA) strategy can be an effective substitute. This allows donors who wish to pass their IRA on to their heirs at death with minimal tax impact, no initial up-front expenses, simple documents and all while making a gift to their favorite charity(ies). Better still, it can exist alongside an existing gift annuity program as another option to improve overall planned giving offerings.
#3 The Crypto CGA:
You may have heard that there has been a lot of gain in cryptocurrencies (even with the recent pullback). And that market tends to be rather volatile. What if that donor wants to “bank” some of the crypto gains for retirement income? Simply fund a CGA through a crypto wallet. Yes, you can do that!
Join us for a free webinar to dive deeper into these three advanced CGA topics (and actual case studies!) by Bryan Clontz, Ph.D., CFP®, CAP® and Johnne Syverson, CFP®, AEP®, CAP® and V.P. of National Gift Annuity Foundation.
Past Free Webinar Recordings (https://go.
May – Noncash Qualified Appraisals Gone Wrong: Deconstructing Appraiser(al) Requirements and Forms 8283/8282
April – It’s a Brave New World: Charitable Gifts of SPACs, PIPEs and NFTs
March – CGA Reinsurance: What it is, What it isn’t, When it works and When it doesn’t
February – Avoiding the Grey Line: Closer Recent Scrutiny of Charitable Pre-Arranged Sales
January – Trends and Five Creative Case Studies from 2020
Nov/Dec – Cryptocurrency Donations Explode: Are you Missing Out?
October – Don’t Be Spooked By Mortgaged Real Estate: Three Creative Charitable Solutions
September – Almost Last Minute Charitable Opportunities Under CARES Act and TCJA
August – Creative Charitable Options for Sub-Chapter S Corporations in 2020 (and Beyond)
July – Testamentary Gift Annuities as a Solution to the Stretch IRA Conundrum