Kappa Alpha Order - Educational Foundation

Establishing a charitable gift annuity (CGA) is a wonderful way for you to secure steady payments for yourself while providing benefits for charitable organizations.

Although most people think of insurance companies when they think of annuities, Kappa Alpha Order Educational Foundation also offers annuities. They are called "charitable gift annuities" because, as a charitable organization, we make the payments to you for your lifetime. A CGA is a gift vehicle that pays you (and an additional annuitant, if you desire) a predetermined amount each year for life. The gift can be established with cash, securities or other property, and in return you receive fixed annuity payments on a regular basis.

The Financial Benefits
Aside from providing a gift to Kappa Alpha Order Educational Foundation, your CGA will offer you the following benefits.

Charitable income tax deduction: The charitable income tax deduction varies according to your age and is taken in the year the gift is made.

Favorable capital gains treatment: If you make the gift with appreciated property, you generally avoid paying capital gains taxes on the gift portion of the transfer.

Tax-free portion: The payments you receive may be partially tax-free, whether they begin now or in the future. For gifts established with appreciated property, the payments will also be partially taxed at capital gains tax rates.

Lifetime payments: You (and/or a second individual) receive a fixed and secure amount for life. Generally, the older the donor, the higher the payment.

Estate taxes: If you are the sole annuitant, the payments cease at death and are not included as part of your estate. If your spouse is the remaining annuitant, his or her interest may qualify for the estate tax marital deduction. If an individual other than a spouse is the remaining annuitant, the value of the remaining payments is included in your estate for estate tax consideration.

Figuring Your Annuity Rate
In addition to the ages of the annuitant(s), rates are also adjusted according to the number of annuitants. While the annuity rate is a matter of agreement between you and Kappa Alpha Order Educational Foundation, maximum rates are recommended by the American Council on Gift Annuities. Check with your legal advisor or our representative for current rates.

Calculate how a charitable gift annuity can benefit you.

Calculate how a deferred charitable gift annuity can benefit you.

Please contact Erik Showalter at 540-460-1401 or 540-463-1865, or via e-mail at eshowalter@ka-order.org, for more information.

Click on the icon to request a FREE guide to charitable gift annuities.


Copyright © The Stelter Company, All rights reserved.

The information in this Web site is not intended as legal advice. For legal advice, please consult an attorney. Figures cited in examples are for hypothetical purposes only and are subject to change. References to estate and income tax include federal taxes only. Individual state taxes and/or state law may impact your results.

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