Skip to main content

Learn how to grow your endowment fund by promoting charitable gift annuities.

Looking for ways to grow your endowment fund? A charitable gift annuity can be a great option for your donors to support your organization.

A charitable gift annuity, or CGA, is one of the most popular planned gifts among donors. That’s because a CGA allows them to balance their charitable giving with their personal income needs.

How a Gift Annuity Works for Donors

Charitable Gift Annuity Infographic, showing how assets are transferred to the Foundation in return for a CGA.

Donors may receive fixed payments for life and a possible tax deduction

Why Gift Annuities Are So Versatile

As fundraisers, a CGA can be a great opportunity to develop a pipeline for non-cash assets. Cash only accounts for 7 percent of wealth, yet it is how most charitable donations are made. According to author and non-cash assets expert Bryan Clontz, that’s because it’s what most fundraisers ask for, despite 93 percent of wealth being held in other assets.

These non-cash assets can include items such as real estate, privately held stock, farm assets and more. Research done by philanthropic planning expert Dr. Russell N. James shows nonprofits that received a non-cash gift reported an average 50 percent growth over five years in comparison to 11 percent growth from nonprofits that only received cash gifts.

How to Best Talk to Your Donors About CGAs

The best way to see if a CGA is right for your donors is to spark up a conversation to discuss their giving plans.

When having these conversations, it is important to avoid formal words and terms. Instead, lean into emotions and memories around giving. Avoid leading with death and consider terms that refer to their legacy and the mission of your organization. Keywords to listen for in these conversations with a donor are “I wish I could give more,” or “Ask me to give more later.”

Donors who may benefit from a CGA are usually nearing the age of retirement, which at this time are baby boomers. They also typically have a desire to increase their fixed income and lower their taxes.

At the Saint Paul & Minnesota Foundation, our team will work with you and your donors to ensure that when donors make a gift, they are able to receive a guaranteed fixed life income, often at a higher rate than that of a savings account or certificate of deposit. They will also be able to establish a fund at as low as $10,000.

See more about the benefits of offering charitable gift annuities to your donors in our planned giving video series for nonprofit fundraisers.

To learn more about how to start a nonprofit endowment fund, contact gift planners Mariah Brook (651.325.4269) or Elizabeth McCray (651.325.4297).

More Stories

Child Tax Credit Supports More Families To Help Make Ends Meet

The Saint Paul & Minnesota Foundation partners with the Office of Financial Empowerment to help spread awareness about the new benefits of the child tax credit.

Read about the Partnership

Important Announcement about Our Grantmaking in 2022

Our 2022 Building Community Capacity grants will be different as we transition to a new enterprise system and adopt a new Grant Portal.

Read the News

How to Develop a Non-cash Asset Strategy for Your Nonprofit

Here’s how to make non-cash assets part of your nonprofit’s fundraising plan.

Learn More

How to Turn Your Board Members Into Your Biggest Advocates

Gift Planner Beth McCray shares her tips for activating nonprofit board members.

Learn More

Engaging Donors During Times of Uncertainty

Here's how to manage the challenges of talking to donors about planned giving during a pandemic.

Learn More

Pivot Your Fundraising

Here are three giving strategies you can talk to donors about during times of uncertainty.

Learn More

Books That Encourage You to Give, Stand and Lead

Foundation staff and nonprofit leaders recommend their top summer reads for nonprofit employees.

Learn More

Qualified Charitable Distributions in Retirement

In this video, we explore how donors can efficiently turn retirement income into a charitable donation.

Watch the video

COMMUNITY IS OUR COMPASS

JOIN
US!

* Indicates a required field