The CharitableCapitalTM Gift Annuity Program

The Reinsurance of Gift Annuities

High Payout Rate ~ Tax Advantaged

Can Provide For Others ~ Secure

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.

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.

  

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.

Supplemental Retirement Payout Example
 

 

 

A “CD” Alternative?  Donor/Annuitant - Male, Age 75; Contribution: $100,000

 

 

Next Page >