Charitable Gift Annuities

How CGA Works

After making your gift to Macalester, fixed payments will be made to you for life or to a maximum of two individuals yourself for life or a number of years depending on their age(s). The annuity payment is determined based, in part, on the age of the annuitant(s) (the person/persons receiving the payments) and when payments begin. 

Chart description: The diagram uses navy blue and orange icons with numbered steps to map the process. An orange figure with a heart is labeled DONOR, while an orange document icon is labeled CHARITABLE GIFT ANNUITY. A navy blue curved arrow (Step 1: GIFT OF ASSETS) connects the donor to the annuity, while a returning arrow (Step 2: INCOME TAX DEDUCTION / FIXED PAYMENTS) completes the loop. A final straight arrow (Step 3: REMAINDER TO MACALESTER) points right toward the college’s navy blue shield logo.

CGA Benefits

• You will receive a charitable deduction the year you create your CGA
• You and/or your annuitants will receive an annual payment for life at an attractive rate
• A portion of the annual payments will be tax-free
• You may see capital gains savings if you donate long-term appreciated securities to create your CGA

Details to Keep in Mind

• The minimum gift to establish a CGA is $15,000
• Annuitants must be at least 60 years of age to start receiving payments
• CGAs may be funded with cash, publicly traded securities, and, under specific circumstances, an IRA qualified charitable distribution (QCD) 
• IF you don’t need income immediately, consider deferring your payments