Planned Giving

By Dan Zelinski

For the first time since January 1, 2012, the American Council on Gift Annuities released new rate tables this summer …

… And effective July 1, 2018, the rate of income paid to donors for new charitable gift annuities (CGAs) has increased!

This breaking news in the planned giving world gives ministries like yours a reason to create conversations with donors about CGAs and presents a great opportunity to deliver CGA messaging in various donor communication streams.

In addition to typical language about the tax advantages of using a CGA, here are a few things to keep in mind as you present CGA opportunities to donors:

1. CGA marketing should appeal to a donor’s felt need for stability. In a world plagued with uncertainty — things like political tension and a volatile stock market — CGAs offer something a donor can count on: fixed income for life! CGAs are appealing because they are stable.
2. CGA marketing should appeal to a donor’s felt need for permanence. When a donor donates to a ministry they care about through a CGA, it allows them to make an eternal impact and move God’s Kingdom forward — even after their death. Investing in a CGA ultimately means building a spiritual legacy.
3. CGAs often serve as a doorway for additional planned giving opportunities. For many donors, a CGA is the first type of planned gift they make. It’s important to remember this as your planned giving team builds relationships with donors inquiring about this option. These donors may become great planned giving prospects, and if their first experience with a CGA goes smoothly, they’ll be excellent candidates for additional planned giving options and future estate planning opportunities.

It’s not every day “breaking news” happens in the planned giving world. So take advantage of this year’s rate increase and talk to your donors this summer and fall about opportunities to leverage their missional impact with a charitable gift annuity.

If you have questions about marketing CGAs or other planned giving vehicles to your donors, feel free to contact me at dzelinski@servantheart.com.