A Charitable Gift Annuity (CGA) provides you, or a party chosen by you, with a guaranteed lifelong income stream while also supporting a charity. When you create a CGA with BSS, you will receive an annuity, and upon the passing of the annuity holder, the remaining balance goes to the charity designated by you.

Several payout options are available. You may choose to receive the fixed income for yourself or another person for their natural life. A couple may also choose to have the fixed income paid until the last spouse passes away. When creating the annuity, you can choose to receive payments quarterly, semiannually, or annually.

The annuity income depends on two variables:

1. The age of the annuity holder
2. Whether the annuity is based on one life (an individual) or two lives (a couple)

The older the annuity holder is when payments begin, the greater the payment, and the payout will be greater for one life than it will be for two lives. The income stream is guaranteed for the life of the annuity holder(s).

Once you take out a CGA, your payment amount is guaranteed for life, regardless of what happens to the economy or stock market. Although rates may change for new CGAs, the rate for any established CGA will remain the same throughout the life of the contract. BSS uses rates determined by the American Council on Gift Annuities (ACGA), which is the industry standard.

There are two key tax advantages that come with establishing a CGA:

1. A portion of the initial gift you contribute is tax deductible.
2. A portion of each payment you receive during your life expectancy is tax exempt, resulting in a higher effective rate of return.
3. Assets used to create your CGA are generally not included in your estate for estate and inheritance tax purposes.

A CGA may be purchased with cash or marketable securities, such as stock. Additionally, other assets that are readily marketable may also be used to purchase a CGA, depending on the nature of the asset.

The remaining amount contributed to a CGA is held in a separate account for investment and annuity payments, and, upon the beneficiary’s death, the remaining balance will go to the ministry (or ministries) that they designate. If your CGA is with BSS, you can change your charitable designations should you wish to.