SVCF Sees Growth in Charitable Gift Annuity Program with Nonprofit Organizations

Rebecca DuprasIn the past few months, Silicon Valley Community Foundation has seen significant growth in the number of local nonprofit organizations we serve through our Charitable Gift Annuity (CGA) program. SVCF is excited to be working with more local nonprofits to facilitate donations from their donors. Utilizing SVCF’s ability to issue Charitable Gift Annuities allows nonprofits to better serve their donors. CGAs are a simple, low-cost way for donors to contribute to causes they care about most while supporting an organization’s long-term goals. 
 
Why are Charitable Gift Annuities so appealing for nonprofit organizations?
  • The program works for nonprofits of all sizes 
  • The nonprofit gains access to SVCF’s experience with CGAs while providing an important charitable option to donors
  • SVCF administers the program, including completion of all state and federal tax filings 
  • There is no cost to the nonprofit
  • 100 percent of the annuities’ remainder goes to the nonprofit
 
Why are Charitable Gift Annuities good for nonprofit donors?
  • Donor receives a fixed income stream that is backed by the assets of SVCF
  • Donor can create a CGA for as little as $25,000
  • Donor pays a low set-up fee of $200
  • Donor may qualify for a tax-deductible donation
  • Donor could possibly increase cash flow, especially if CGA is funded with low-yielding assets
  • A portion of the payments to the donor may be tax-free
  • Donors may receive a capital gains tax advantage if CGA is funded with long-term appreciated assets
  • Best of all, the residuum will be used for the long-term benefit of the nonprofit that the donor cares about
 
If you work with a nonprofit organization that might benefit from this program, or if you have a client who wants to establish a CGA to benefit a nonprofit, please contact Rebecca Dupras, Interim Vice President, Development, at rdupras@siliconvalleycf.org or 650.450.5519.