World Vision USA

Charitable Gift Annuities:
Gifts That Give Back

Receive an Income for Life and Save on Taxes

When we give, it’s because we support a certain cause or mission. Not because we expect something in return. However, there are gifts that allow you to support World Vision while also receiving benefits. Charitable gift annuities (CGA) are gifts that give back and pay you income for life.

How It Works
When you give a CGA, you make a contribution of cash, marketable securities, or other appreciated property owned longer than one year to World Vision. In return, we agree to make fixed payments to you for the rest of your life. The annual rate of your payment is based on your age at the time of the gift. The older you are, the higher the rate. Your payment rate doesn’t fluctuate with the stock market, interest rates, or inflation. It is firmly set at the time of your gift and never changes. After your lifetime, World Vision uses the remaining balance for our work.

You can also provide payments for another individual—typically your spouse, but it could also be a parent, adult child, family member, or friend. Or you can establish a two-life gift annuity that pays you and another person if you choose.

Charitable Gift Annuities

Benefits of a Charitable Gift Annuity

  • Based on life expectancy, older annuitants (the person or people receiving the CGA payments) have higher payment rates.
  • You have potential to receive increased disposable income.
  • You may receive an income tax charitable deduction (if you itemize) in the year you set up the gift annuity.
  • Each year a portion of your payment is income tax-free, until you reach your anticipated life expectancy.
  • If you fund your gift annuity with appreciated property, rather than cash, you could benefit even more with favorable capital gains tax treatment at the time of your gift.
  • After your lifetime, the remaining portion of your gift will support our mission, helping to fulfill your philanthropic goals.

Keep Your Cash!

You can fund a charitable gift annuity with more than just cash. Perhaps you have stock that is producing lower dividends than you had planned on, or you have securities that have turned out to be higher risk than you’re currently comfortable with. You can exchange those for a secure, stable charitable gift annuity and maintain day-to-day financial security. Talk with us or your financial advisor about creative options for funding a gift annuity.

Charitable Gift Annuities

An Example

Our donor, age 75, plans to donate a maturing $25,000 certificate of deposit to World Vision. Because they need continuing income, they decide to give the cash in exchange for a one-life charitable gift annuity that we will issue at the suggested rate of 6.2 percent, or $1,550 per year.

Because our donor itemizes their tax deductions, they earn a federal income tax charitable deduction of $10,508* (the amount of the $25,000 donation attributable to the gift portion). With a marginal income tax bracket of 24 percent, the tax savings of $2,522 reduces the net cost of the gift to $22,478.

In the chart you will see recommended rates from the American Council on Gift Annuities, which most nonprofit organizations follow. Check with our representative for current rates and applicable ages for charitable gift annuity eligibility.

One Recipient
Age Rate
60 4.7%
65 5.1%
70 5.6%
75 6.2%
80 7.3%
85 8.3%
90+ 9.5%
Two Recipients
Ages Rate
60/65 4.3%
65/70 4.7%
70/75 5.2%
75/80 5.7%
80/85 6.6%
85/90 8.0%
90/95 9.3%

*Based on a 2.4 percent charitable midterm federal rate. Deductions and calculations will vary depending on your personal circumstances.

Charitable Gift Annuities

Next Steps

We want to work with you to create a gift that best fits your circumstances and our needs. To learn more about the benefits of establishing a charitable gift annuity with World Vision, please contact us today.

World Vision’s Planned Giving Department
Phone: 1.800.426.5753
34834 Weyerhaeuser Way S.
P.O. Box 9716, Mail Stop 353
Federal Way, WA 98063-9716

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Charitable Gift Annuities: Gifts That Give Back

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