Charitable Gift Annuity
Payments for your lifetime. Generosity that extends beyond it.
The Charitable Gift Annuity through the Foundation of the Evangelical Lutheran Church in America (ELCA) gives to you and to ministries of the church. You make a cash gift or securities to the ELCA Foundation, and that gift provides you with annual (or quarterly payments) for the remainder of your life. Your gift, however, continues to give even after your death.
You not only enjoy the spiritual act of giving, but you may also realize significant financial and tax advantages. The ultimate satisfaction comes in knowing you are making an important contribution that will help underwrite the ministry of the church for years to come.
Charitable Gift Annuity rates are tied to one’s age at the time the annuity is created. Personal illustrations are available upon request for one or two-life annuities. Contact: director@plan2giv.org for more information.
Annuity rates are established and recommended by the American Council on Gift Annuities.
Learn more by visiting the 
ELCA Rate Calculator.
Benefits of the Gift Annuity
CGA rates may provide you with an annuity payment greater that your assets are now yielding.
You can have freedom from investment responsibility. Once you have made your gift, the ELCA Foundation takes care of the rest.
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You simply receive a check in the mail, or have funds electronically deposited into your bank account. (Payments can be made annually, semi-annually, quarterly or monthly with minimum payments of $100.)
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You receive an immediate tax deduction. Part of your annuity is designated by the IRS as a charitable gift. If you itemize, you receive a charitable income tax deduction. If the full deduction cannot be used in the year you make your gift, the unused portion can be carried forward up to five years.
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You save on future taxes. Because the IRS considers your annuity payments a return of principal, a portion of such payments is tax-free for the years of your life expectancy.
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You can avoid some capital gain taxes. If you fund your annuity with an appreciated security (owned more than 12 months and valued more now than when purchased) you can by-pass a portion of applicable capital gain tax.
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You choose the ELCA ministry that will ultimately benefit from your gift annuity. Designate any ministry of the ELCA you choose: a congregation, synod, seminary, college, social ministry organization, or churchwide ministry, at home or abroad, can benefit from your gift.
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You may avoid estate taxes and probate costs. A charitable gift made now will remove assets from your estate and possibly reduce estate tax and probate costs.
How does the gift annuity work?
Mrs. Jones wants to increase her income and, at the same time, desires to support a specific ministry of the church. Ms. Jones owns some stock that was given to her by her parents. The value of the stock was $4,500. Today the stock is worth 20,000. She only receives a dividend of 2% or about $180/year.
Ms. Jones decides to donate appreciated stock to create a Charitable Gift Annuity. The ELCA agrees to provide Mrs. Jones with payments for life. At her age the annuity rate is 8.0%. Therefore she will receive $800.00 annually or $200 quarterly. She may elect to receive her payments through an electronic deposit in the bank account of her choice.
That means she has increased her income from $180 to $800.00 per year and saved on taxes at the same time. Equally import, Mrs. Jones has the joy of knowing her gift is helping to fulfill the ministries of Christ.
The above illustration is for educational purposes only.
Both charitable deduction and tax-free income may vary slightly.
For a personal illustration, e-mail us. Please provide your name and date of birth.
