Charitable Gift Annuity (A Life Income Gift)

One example of a “life income gift” is a Charitable Gift Annuity, which is a simple contract between you and Playhouse Square. The Charitable Gift Annuity works like this:

In exchange for your irrevocable gift of cash or other assets, Playhouse Square agrees to pay you (or you and one other person) a fixed income each year of your life. The payments are guaranteed and are not affected by the ups and downs of the economy. Payout rates are based on your date of birth.

A Charitable Gift Annuity is appropriate for individuals aged 60 and older. For those individuals under age 60, we recommend a Deferred Charitable Gift Annuity. (Contact Playhouse Square for specific information about a Deferred Charitable Gift Annuity.) 

A minimum gift of $50,000 is required to participate.

How do I benefit?

  • Fixed payments for the rest of your life
  • Payments are not affected by the ups and downs of the economy
  • An immediate charitable income tax deduction for a portion of your gift
  • Part of your annual income is tax-free
  • Possible reduction in estate taxes
  • Reduction in capital gains taxes if stock is used to create your annuity
  • Recognition through Playhouse Square’s legacy society (Legacy Circle)
  • Invitation to an annual recognition event

Step-by-Step Example of a Charitable Gift Annuity for an Individual Aged 70

  1. You transfer $50,000 to Playhouse Square to establish a Charitable Gift Annuity.
  2. The gift annuity pays a FIXED and GUARANTEED income at 6.1% for life.*
  3. You receive an annual payment of $3,050, a portion of which is tax-free.
  4. You receive a one-time federal income tax deduction in the year of your gift.
    *exact rates are dependent upon age and other factors generally following the ACGA guidlines. 

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Using a Gift From Your IRA to Fund a CGA

Turn part of your IRA into a gift that pays you back.

For example, you transfer up to $55,000 per invidual per lifetime directly from your IRA to establish a charitable gift annuity with Playhouse Square. You then receive fixed payments for life, while ultimately creating a meaningful gift for Playhouse Square. The distribution can count toward your RMD without being inlcuded in your taxable income. The future payments are taxable as ordinary income.

Using A Gift of Stock to Fund a CGA

If you own stock that has grown significantly in value, you may be able to use those shares to establish a charitable gift annuity rather than selling them yourself. You receive fixed payments for life, qualify for a charitable deduction for a portion of your gift, and can spread recognition of some of the capital gain over time. Ultimately, your gift provides meaningful support for Playhouse Square.

Request a confidential proposal or information

Understanding your options with Charitable Gift Annuities is step number one. If you would like to receive a confidential proposal designed specifically for you, please Leanne Dewyer, Director of Development at 216-640-8411.

The information presented here is for general educational purposes and not intended as legal, tax, or financial advice. Please consult your professional advisors to determine what is appropirate for your individual circumstances.