Charitable Gift Annuities
Charitable Gift Annuities allow you to make a planned contribution to The Philadelphia Foundation or to support the nonprofit of your choice while also receiving quarterly income.
You receive a fixed stream of income for your lifetime (or the lifetimes of up to two people), backed by the unrestricted assets of The Philadelphia Foundation. A portion of the total income you receive is tax-free.
A CGA can be established for a minimum of $10,000 by current fund-holders at The Philadelphia Foundation and for $25,000 by new donors.
How It Works
Your annuity program begins at age 60. However, younger donors may defer income until they are 60, and still realize a tax benefit now.
While you are alive, you receive quarterly payments.
Upon your death, we set up a fund in your name, in the name of your family or business, or in honor of any person or organization you choose.
We handle all of the administrative details -- issuing annuity payments to you during your lifetime and, afterward, issuing annual grant awards to nonprofits named by your fund.
Your permanent gift will be placed into an endowment that is invested over time. Earnings from your fund are used to make grants addressing community needs. Your gift -- and all future earnings from your gift -- is a permanent source of community capital, helping to do good work forever.
CGA illustration. Example of how an 82-year-old who put $10,000 in a 2012 CGA could achieve more than his initial investment ($10,056.46) in tax savings and tax-free income in 10 years, and also have $4,502 available for charitable purposes upon his death.
CGAs at The Philadelphia Foundation by the numbers.
Rates for Charitable Gift Annuities
The Philadelphia Foundation follows the percentage rates set forth by the American Council on Gift Annuities, which are based upon prudent projections of investment return and life expectancy. TPF, Inc. directs gift administration, custody of assets and investment management and has oversight of all of The Philadelphia Foundation's deferred gifts.
Contact us to request a confidential personalized report prepared for you that will illustrate the amount of your tax deduction and fixed rate of payment.