Income for Life

A charitable gift annuity (CGA) is a gift arrangement in which, in return for a donation to an organization such as the Jewish Federation Foundation, you will receive periodic payments for life.

The older you are, the higher your payment rate. When there is one annuitant (a person to receive payments) payment rates range from 5.7 percent for 70 year olds to 9.5 percent for 90 year olds. Payment rates for two annuitants are somewhat lower.

A portion of your payments will be taxed as ordinary income, while the remainder will be tax free. As a donor, you will also qualify for an income tax charitable deduction if you itemize your tax return.

The Foundation follows the American Council on Gift Annuities recommended payment rates.

* The federal income tax charitable deduction is subject to certain limitations.

Peace of Mind

Question: Is this program secure?
Answer: Yes.
The Foundation invests your entire donation, maintaining a reserve fund to guarantee the solvency of its gift annuity program. In addition the program is backed by the total assets of the Foundation consisting of approximately $16,000,000.00.

Question: Are my payments guaranteed?
Answer: Yes.
When you make a charitable gift annuity donation, we will provide you with a contract guaranteeing that you will receive these fixed payments for life.

Question: Are my payments affected by interest rate or economic fluctuations?
Answer: Your payments will not change.
They will not be lowered or increased, regardless of changes in the economy.

Question: Can I name another person to receive annuity payments?
Answer: Yes.
You can name up to two individuals per contract to receive annuity payments, typically you and one other person. However, you need not be the recipient.

Question: Can I give securities or cash to fund a gift annuity?
Answer: Yes. Both are acceptable. We can describe for you the benefits of both ways of giving.

The Foundation has been issuing charitable gift annuities since 1994 to many satisfied donors.

A Lasting Legacy

Creating a charitable gift annuity is the perfect way for you to establish a lasting legacy that will support the work of the Federation and Foundation in the decades ahead, supporting the Jewish Community here and abroad.

Your Next Move

For more information please call
Donna Albertario at (203) 267-3177 or Gene Kaplan at (203) 264-4652
for a no obligation interview and a personalized income and charitable deduction data sheet.
All inquiries will be kept in the strictest confidence.



"I have had a Charitable Gift Annuity from the Foundation since 1994. I got a generous interest rate, numerous tax advantages, especially using appreciated stock, part of my payments were tax free and I had the comfort of knowing it was secured by all the assets of the Foundation. Call me and let’s talk. “

See Current Charitable Gift Annuity Rates

Additional information on Charitable Gift Annuity

A Charitable Gift Annuity (CGA) is a simple, two-page agreement between the donor and the Foundation - Jewish Communities of Western CT, Inc. The minimum amount required to enter into a CGA is $10,000, so it is not just for the very wealthy.

Donors age 65 and older receive immediate income on a quarterly basis for their lifetime. Donors under age 65 can use a deferred CGA as retirement planning vehicle, with payments to begin at age 65. The older the donor, the higher the annuity rate.

Financial Benefits

• Fixed income payments for donor’s lifetime, or for joint lives of donor and spouse
• Directly deposited to your bank account on a quarterly basis
• A portion of the value of a contributed asset qualifies for an income tax charitable deduction, reducing taxes
• If funded with appreciated securities, no capital gains tax is due when the securities are transferred to the Foundation
• Potential substantial increase in return on assets
• Value of contributed asset is removed from donor’s estate thereby reducing estate tax which may be due
• Portion of annuity payments in initial years will be tax-free income.

Some Other Specifics

• Cash or readily marketable securities can be used to fund a CGA
• Payments are based on value of contributed assets and age(s) of donor(s)
• Rates are based on a donor’s age at the time the CGA is established, increasing from age 65 (see chart below for single life annuity)
• Annuity for a couple pays a lower rate since the period of payments is presumed longer for two lives
• Single-life gift annuity rates as of September 1, 2009 are as follows::

Age 65—5.3 %
Age 70—5.7 %
Age 75—6.3 %
Age 80—7.1 %
Age 85—8.1 %
Age 90 and over—9.5 %

CGA rates above were set by the American Council on Gift Annuities, which most nonprofits that offer CGAs adhere to.