Planned Giving Tips – Secure 2.0 Act / Higher CGA Rates

PG Tips2

By Jamie Sargent

April 5, 2023

Charitable Gift Annuities (CGAs) are an attractive and valuable way for donors to support the causes they care deeply about while receiving income for life. 

In December 2022, the President signed the Secure Act 2.0 which now allows donors to create life income gifts such as CGAs using funds from their IRAs. This is significant because the donor now benefits in two ways: 1) they earn income for life on the CGA and 2) they pay no immediate taxes on the retirement distribution because it goes to charity.

Additionally, in January 2023, CGA rates increased to the highest level in a decade. New tax laws and new rates make this a great time to be talking with your donors about the gift that gives back!  If you are not talking to your donors about this opportunity, you can bet another charity is. Let us know if we can help you with your CGA marketing.

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