Twice the Impact During the Dog Days of Summer
Twice the Impact During the Dog Days of Summer
Our End of Summer 2x Match is underway, but not for long. From now until midnight on Aug. 31, your gift can have double the impact on advancing research and helping provide care and support for those impacted by Alzheimer’s.
Donate NowCharitable Gift Annuity (CGA)
A charitable gift annuity (CGA) is a popular and simple agreement between you and the Alzheimer's Association. You make a gift of cash, stocks, bonds, mutual funds, securities or real estate. In exchange, you or someone you choose receives fixed, secure payments for life. Any remaining funds will be used to help us end Alzheimer's and all other dementia.
At your request, we are happy to prepare and provide a no-obligation customized gift annuity illustration designed around your age, timing preferences and beneficiaries.
Find Your RateHow a charitable gift annuity works
- You must be 65 years of age or older.
- You irrevocably transfer cash, securities or other assets to fund a gift annuity with the Alzheimer's Association.
- The Association provides fixed payments at a secured rate for lifetime beneficiaries. The rate depends on your age and is usually higher than CDs or savings accounts offer.
- Part of the income may be tax-free, and you could be eligible for additional tax benefits.
- Later, the remaining value goes to the charity.
Benefits of a CGA
- Receive fixed payments for life to you or a loved one that will never change.
- An immediate charitable deduction in the year you create the annuity if you itemize your deductions.
- Bypass capital gains tax when using appreciated stocks, mutual funds, bonds or real estate to fund your charitable gift annuity.
- Your rate is based on your age when the CGA is created; the older you are, the higher your payout rate.
- The rate is often times higher than you would receive from a CD, savings account or the stock market.
Funding a CGA
There are many options to create a charitable gift annuity, and the right one for you depends on your needs.
Cash
Making a gift of cash is the simplest way to establish a CGA. This is an easy option if you're seeking simplicity and immediate tax benefits.
Benefits:
- Easy to arrange.
- Immediate charitable deduction.
- If you're 65 years of age or over, payout rates may be higher than CDs or the stock market.
- Your future gift is established to provide care, support, research and advocacy.
Publicly traded securities
Appreciated stocks, bonds or mutual funds can be donated to fund a CGA. This allows you to defer or bypass capital gains tax while supporting the Alzheimer's Association. This may be a very advantageous option for long-held investments that have appreciated significantly in value.
Benefits:
- Defer or bypass capital gains tax on appreciated assets.
- Receive a charitable deduction for the full market value.
- Convert market gains into lifetime income and lasting impact.
Real estate
A home, vacation property, commercial building or land can be donated to fund a CGA. The property will be sold and the proceeds used to establish your annuity. Though advanced coordination is required between you and us, this is a great fit for individuals with appreciated or underutilized property who want to simplify their portfolio.
It's important to talk first with the Alzheimer's Association planned giving team to make sure we can accept, use and sell the gift appropriately.
Benefits:
- Avoid capital gains tax on the sale.
- Receive a charitable deduction.
- Eliminate the burden of managing or selling the property.
- Transform property into a legacy of hope for families affected by Alzheimer's.
Retirement assets
If you're 70.5 years of age or older, you can make a one-time qualified charitable distribution (QCD) of up to $55,000 directly from a traditional IRA to fund a CGA to benefit you and/or a spouse. If you're required to take minimum distributions you don't need, this can be a great option.
Benefits:
- The QCD amount is excluded from taxable income.
- The gift counts toward your required minimum distribution (RMD) for those over 73 years of age.
- Possibly reduce Medicare premiums, as it lowers your annual gross income.
- You receive fixed payments for life, and the remainder supports the Alzheimer's Association.
Important notes:
- Only traditional IRAs are eligible.
- You must be at least 70.5 years of age at the time of the gift.
- The QCD-funded CGA does not qualify for a charitable deduction, and the income exclusion may provide tax advantages.
Life insurance
You can use the cash value of a life insurance policy or the proceeds from a surrendered policy to fund a CGA. You can also name the Alzheimer's Association as the beneficiary of a policy for a future gift. This is a great opportunity to repurpose a paid-up or low-use policy to create a charitable legacy.
Benefits:
- Unlock value from an unneeded policy.
- Receive a charitable deduction.
- Convert a dormant asset into lifetime income.
- Help fund critical programs for families living with Alzheimer's.
Closely held stock
Privately held business interests can be used to fund a CGA, though this requires careful planning, valuation and advanced coordination with the Alzheimer's Association team. The shares will first need to be sold to generate cash for the annuity funding. Consider this option if you're a business owner planning for retirement or succession.
It's important to talk first with the Alzheimer's Association planned giving team to make sure we can accept, use and sell the gift appropriately.
Benefits:
- Avoid capital gains tax.
- Receive a charitable deduction.
- Leave a legacy that advances Alzheimer's research and advocacy while transitioning out of a business.
Cryptocurrency
Cryptocurrency must be converted to cash before funding a CGA. Crypto is transferred and sold with the proceeds used to establish your annuity. Donating a portion of your wallet may help offset capital gains on substantially appreciated currency.
Benefits:
- Avoid capital gains tax on appreciated crypto.
- Receive a charitable deduction for the fair market value.
- Diversify out of volatile assets.
- Use digital assets to make a lasting difference in the fight against Alzheimer's.
Types of gift annuities
Gift annuities also offer flexibility and can be arranged to accomplish a variety of goals.
A single-life gift annuity is a popular option if you would like the security of guaranteed income. You receive payments for the rest of your life at a premium rate and may save taxes.
A two-life gift annuity makes payments to you and another beneficiary, such as your spouse, sibling or child, for the remainder of both your lives. This is a secure way to ensure income for a loved one now and in the future. Payments continue uninterrupted, even if your other assets are tied up in probate.
A deferred payment gift annuity, for one or two lives, allows you to establish a gift annuity now and choose a future date to start receiving payments. This deferred payment provides numerous income and tax benefits, including a higher payout rate. There is no contribution limit, so this can be a useful way to supplement income from traditional retirement plans.
Free Resources to Help You Plan
Learn More About Planned Giving
Find your local Alzheimer's Association Planned Giving Advisor
Our planned giving team is here to answer questions about including the Alzheimer's Association in a will, trust, beneficiary designations or other legacy planning opportunities.
Contact the planned giving team
Jill Workman
Alzheimer's Association
Senior Director, Planned Giving
Phone: 866.233.5148
Email: plannedgiving@alz.org
The information provided on this website is presented solely as general educational information and is not intended to be a substitute for professional estate planning, financial or legal advice. It is important to consult with a tax, financial and/or legal advisor about your specific situation.