Charitable Gift Annuity
The Charitable Gift Annuity (CGA) is a planned gift that is arranged through our partnership with Christian Stewardship Services (CSS). It enables Christian school supporters to support a Christian school or schools with a substantial gift and also enjoy an excellent income for life – along with a number of other benefits!
Your gift is invested ethically and responsibly by CSS and you receive a fixed regular income based on your age and rates in effect when the annuity is arranged. This income stream ends at death and the portion remaining in the investment is gifted to the Christian School Foundation for the benefit of your designated school or schools. Joint Gift Annuities can also be arranged for couples. A large portion of the income you receive is tax exempt and all donors qualify for a one-time charitable donation receipt of at least 20% – and at times in excess of 30% – of the annuity value. This is a significant benefit that will reduce your current taxes owing. Generally, individuals and/or couples aged 60 and over benefit the most from a Charitable Gift Annuity – see reverse side for examples.
Benefits and features of a Charitable Gift Annuity
- irrevocable gift
- guaranteed, excellent income for life
- significant up-front tax receipt
- income received partially/significantly tax exempt
- gift not subject to probate fees
- income stream eligible for pension credit on income tax return
- Foundation receives gift only upon death of the donor
What is the Annuity Rate?
Upon request, Christian Stewardship Services will provide a written quotation outlining the payments to you at your specific age (or ages in joint annuities), the choice of payment frequency and the dates of payment available. The quotation will also identify what portion of the payment is taxable and non-taxable. It will also include the amount of the onetime charitable tax receipt that will be issued.
Sample Quotes – supplied by CSS in June 2011
- A single male, 80 years of age with an initial investment of $20,000.00 would receive a one-time $8,097.74 charitable tax receipt. He would also realize a 7.39% return on his investment resulting in an annual payment for life of $1,478.00 of which none is taxable.
- A single female, 75 years of age with a similar initial investment of $20,000.00 would receive a one-time $6,169.17 charitable tax receipt. She would realize a 5.99% return on her investment resulting in an annual payment for life of $1,198.00 of which only $10.13 per year is taxable.
- A couple, both 80 years of age, again with an initial investment of $20,000.00 would receive a one-time $6,196.06 charitable tax receipt. They would also realize a 5.99% return on their investment resulting in annual payments for life of $1,198.00 of which none is taxable. These payments would continue until the death of the surviving spouse.
What Guarantees the Income?
The security of the annuity payments is guaranteed by the existence of an investment fund. In addition, a special annuity reserve is held as an extra special reserve for the future. Both funds are identified separately from all other funds at CSS. As required by federal legislation, a qualified actuary periodically reviews both the reserve requirements and the investment portfolio.
What about the Issuer?
These gift annuities are issued by Christian Stewardship Services; a charity registered with the Canadian Revenue Agency (formerly Revenue Canada and CCRA) under BN# 10692 0309 RR0002. CSS was established in 1976 as a federal non-share corporation. You may also contact them directly at 1-800-267-8890 or visit them online at www.csservices.ca