Charitable Gift Annuity
A Charitable Gift Annuity (CGA) is an income-producing, charitable tool. You make a gift of cash or securities to fund a charitable gift annuity contract with Camp Burton. In return, Camp Burton will make fixed income payments to you for life. At the end of the contract, the remaining balance becomes a legacy gift to support Camp Burton’s mission to provide a fun, safe place for campers to Explore, Engage, and Experience our Lord Jesus.
This simple tool can also offer great benefits such as a partial tax deduction and partial tax-free income, making this a very tax-favored tool.
How a Charitable Gift Annuity works
· Submit an application along with an irrevocable gift to Camp Burton using cash, securities, or *other assets to fund a CGA.
· Sign a contract with Camp Burton detailing the payment amount, payment frequency (quarterly, bi-annually, annual), charitable deduction, etc.
· Camp Burton places 100% of your donation into a special reserve account and pays you a fixed income for life.
· You may receive a partial tax deduction that you can claim in the year the contract is funded, and a portion of each payment may be tax-free for a period of time.
· After the lifetimes of the annuitant(s), Camp Burton uses the remaining funds to further our ministry.
*Recent legislation allows individuals aged 70½ or older to make a one-time, tax-free distribution (QCD) from their traditional IRA (up to $54,000 in 2025) to directly fund a CGA. This distribution can count towards fulfilling Required Minimum Distributions (RMDs) but does not provide a charitable tax deduction. This IRA distribution to directly fund a CGA is limited to once in a lifetime–though you can fund multiple CGAs, totaling up to $54,000, within the same tax year.
Key features of a Charitable Gift Annuity
Funding: A CGA can be funded using cash or appreciated securities, or in some cases, a Qualified Charitable Distribution (QCD) from your IRA (which has different tax implications).
Fixed Lifetime Payments: Camp Burton provides you with guaranteed, fixed payments for life. The payout amount is determined by several factors, including your age at the time of the gift and the size of the donation.
Partial Tax Deduction: Individuals funding the contract are eligible for a partial charitable tax deduction in the year the CGA is established, based on the estimated amount that will ultimately go the ministry.
Tax-Favorable Payments: A portion of the annuity payments may be tax-free for a period, representing a return of principal, while the rest may be taxed as ordinary income, or capital gains, depending on what assets were used to fund the annuity,
Charity Receives Remainder: At the close of the contract (after all the annuitants’ lifetimes) Camp Burton retains the remaining balance as a gift to support our mission.
Minimum Gift Amount: Camp Burton’s minimum to open a CGA is $5,000.
Minimum Age: Our minimum age for payments to begin is age 50. If you are below this age, you may be able to establish a deferred annuity (with payments beginning at a later date). However, this tool is geared to help supplement retirement income and generally provides higher payments to older annuitants.
For questions about Charitable Gift Annuities or how they could work for you, contact your estate planner or Ben Lee at In His Steps Foundation, [email protected], 330-528-1785