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Why CGAs May Be an Even Better Giving Option

Charitable gift annuities1 have been a longtime favorite among savvy supporters. With new gift annuity rates effective July 1, many donors may find increased benefits to themselves while supporting a cause close to their hearts.

Q. What is a CGA?
A. It's a contract with The Ramapo College Foundation in which:

  • You agree to make an irrevocable donation to us.
  • We, in turn, agree to make fixed payments to you each year for your lifetime. (You can have the payments benefit others, too, such as a loved one.)
  • The portion of your gift that remains at your death helps support The Ramapo College Foundation.
Q. What are the benefits?
A. It's a gift that:

  • Enables you to meet your charitable goals.
  • Provides you with tax-favored lifetime payments.
  • Offers immediate income tax savings (when you itemize).
If you are retired and depend on stock dividends for income, consider funding a gift annuity with those stocks. That way, you'll still receive income—in many cases, in higher amounts.

Q. What payments can I expect?
A. The rate of payment is determined by the ages of those receiving payments at the time of the contribution—the older the recipients, the higher the rate. Payment rates are locked in for the duration of the gift annuity.

For more information about charitable gift annuities, contact Ellen Dudas at 201-684-7005 or or consult your tax planning professional.

One-Life Rate2
50 4.2%
55 4.4%
60 4.8%
65 5.3%
70 5.8%
75 6.5%
80 7.5%
85 8.4%
90+ 9.8%

Contact us for rates based on two lives.

1Charitable gift annuities are not available in all states.
2Rates effective July 1, 2011

Copyright © The Stelter Company, All rights reserved.

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

Ramapo College of New Jersey • 505 Ramapo Valley Road • Mahwah, NJ 07430 • 201-684-7500