An annuity is a payment of a fixed amount of money at regular intervals of
time. A charitable gift annuity (CGA) involves giving cash or securities to an organization
in exchange for them paying you regular income for the rest of your life. The agreement
is documented in a fairly standard contract that does not require a lawyer to complete.
To help in the Lord’s work in Hawaii, the national Southern Baptist Foundation
(SBF) became licensed to issue CGA’s in Hawaii. The SBF will contractually agree
to make annuity payments in exchange for a gift that will eventually go to the charity
designated by the purchaser of the CGA. The designated charity can be a ministry
within the Hawaii Pacific Baptist Convention.
CGAs are designed to provide attractive fixed payments for the annuitant (the
beneficiary). The rates are higher the older the annuitant. Currently the rates
One annuitant Two annuitants
The rates are lower if there are two annuitants, as the payments continue until
the last annuitant passes on.
How A CGA Works
- You transfer cash or securities to The Southern Baptist Foundation. In
exchange, they pay you fixed income for life.
- The fixed income can be quite high depending on your age.
- A portion of your income stream will likely be tax-free.
- You will receive a charitable deduction for a portion of your gift.
- Ultimately, your gift will be passed on to the ministry you designate.
The charitable gift annuity is a contract between you and The Southern Baptist Foundation.
Payment start times can vary, making CGAs ideal in planning and providing for
The payments on most CGAs start soon after the gift is received by the Southern
The CGA contract can call for payments to start at a specific later date or
at a date between ages 65-75 to be determined later. The interest rate on a Deferred
Payment Gift Annuity is higher than for an Immediate-Payment Gift Annuity, since
the payments don’t start right away.
Herb, 75, and his wife Edith, 74, decide to use $50,000 from maturing CDs to
make a gift in return for an immediate-payment charitable gift annuity that pays
them $2,500 (5%) annually until the second of them dies (two annuitants). They get
an immediate tax deduction of $18,573 and $1,918 of each year’s payment is tax free.
In their tax bracket, they would have to find a taxable investment paying 6.9%
interest to receive the same after tax benefit as the charitable gift annuity will
If you’d like to see how much income you could receive from a CGA and what the effective,
after tax, rate would be, we invite you to click on the Southern Baptist Foundation’s
Gift Annuity Calculator. The information you enter and the results of the calculations
will be available only to you, unless you later elect to make it available to the
Or call us at 973-1111 and we will be happy look it up for you.
Advantages of Giving Through SBF Charitable Gift Annuities
They are standard “cookie cutter” contracts that don’t require engaging lawyers
They provide comparatively high interest income.
They result in meaningful gifts to kingdom causes.
They save income taxes, both immediately and over time.
The regular payments are guaranteed by the assets of the Southern Baptist
If you’d like more information, or would like to proceed to enter into a Charitable
Gift Annuity Contract with the Southern Baptist Foundation, please give them or us
the opportunity to be of assistance.
Telephone 800 245-8183 808 973-1111
Website sbfnd.org hbfnd.org
Address 901 Commerce St., Ste. 600 1801 S. Beretania St.