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The content of this
website is strictly for the use of legal, banking, accounting,
financial and planned giving advisors.
It is not for use by the general public.
The CharitableCapitalTM
Design Center, LLC makes no attempt to ascertain that the information contained
in this website is complete, accurate or updated on a regular basis.
The CharitableCapitalTM
Design Center, LLC does not provide legal or tax advice and nothing herein
should not be construed as legal, tax or investment advice. The intellectual
property, copyrighted and service marked materials contained herein cannot be
used without written consent.
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The
CharitableCapitalTM
Gift Annuity Program
The
Reinsurance
of Gift Annuities
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High Payout Rate
~ Tax Advantaged
Can Provide For Others ~ Secure
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What is a Charitable Gift Annuity?
A
charitable gift annuity is a contractual arrangement between a donor and a
charity. The donor makes an irrevocable gift in exchange for fixed
payments for life. The charity issues the gift annuity agreement and places the
donated funds into a separate account on behalf of the named annuitant. The
charity can then either
self-insure
or
reinsure
its payout obligation while making the stipulated payments to the annuitant for
life.
What Makes Our Program Unique?
The
Program allows charities the opportunity to
reinsure
their gift annuity payout obligations with selected insurance companies so that
the
remainder
of
the gift is available immediately. The Program also allows charities to take
advantage of the perpetual, cost-free planned giving capabilities of financial
services professionals.
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What is
Reinsurance?
The purchase
of a single premium immediate annuity contract by a charity from an insurance
company. The insurance company guarantees that the lifetime payments which the
charity has obligated itself to through a gift annuity agreement
will be paid directly to the charity on the same periodic basis as the payout
obligation which the charity has made to the named annuitant. The
remainder,
the amount donated less the
reinsurance
premium, is available to the charity immediately.
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Reinsurance — Government Regulations
Governmental
regulations require charities which
self-insure
gift annuities to reserve 100% of the risk, effectively restricting the use of
the
remainder of
the amount contributed until the annuitant’s death. However, in most states,
should 100% of the gift annuity risk be
reinsured by
an authorized insurance company,
no reserves are required.
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Supplemental Retirement Payout Example |
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A “CD” Alternative?
Donor/Annuitant - Male, Age 75; Contribution: $100,000
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