Charitable Gift Annuities

How CGA Works

After making your gift to Macalester, you–and up to one additional individual–will receive fixed payments for life. The annuity payment is determined based, in part, on the age of the annuitant(s) 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 to establish a CGA is $15,000.
• If you don’t need income immediately, consider deferring your payments and receiving a higher annuity rate.
• Annuitants must be 60 years of age to establish a CGA and must be at least 65 years of age to begin receiving payments. For those who establish a CGA before age 65, payments are deferred until they reach 65 years of age.
• CGAs may be funded with cash, publicly traded securities, and, under specific circumstances, and IRa qualified charitable distribution (QCD).