Charitable Gift Annuity Calculator (2026)

Not tax or legal advice. Charitable planning at $30M+ requires qualified tax and legal counsel. This calculator provides educational estimates only. Actual IRS computations use 2000CM actuarial tables with precise §7520 factors; consult a planner for exact figures.

A charitable gift annuity (CGA) is a simple two-party contract: you make an irrevocable gift of cash or appreciated securities to a qualified charity, and the charity pays you a fixed dollar annuity for life (or for the joint lives of you and a beneficiary). At your death, whatever remains in the fund passes permanently to the charity. The American Council on Gift Annuities sets suggested maximum payout rates — currently ranging from 4.8% at age 55 to 10.1% at age 90+ — and most charities adopt these rates.¹

With the June 2026 IRS §7520 rate at 5.0%² (same as May 2026), a 70-year-old donor giving $500,000 in cash receives $31,500/year for life, a federal charitable deduction of approximately $169,000, and annual payments that are partly tax-free return of basis. Under the OBBBA (July 2025), taxpayers in the 37% bracket face a 35% cap on the value of charitable deductions and a 0.5% AGI floor beginning in 2026.³ Both restrictions are reflected below.

How Charitable Gift Annuities Work

When you enter a CGA, the charity issues you a contract — not a trust — promising to pay a fixed dollar amount per year for the rest of your life. Because it is a direct obligation of the charity (not a separate trust like a CRT), the annuity is only as secure as the charity itself. Reputable charities typically segregate CGA assets under state supervision.

The key mechanics:

• Irrevocability. Unlike a DAF or private foundation, you cannot reclaim the gift or redirect it to a different charity after execution.
• Fixed payment, not variable. A CRAT (charitable remainder annuity trust) has similar structure but is a trust you establish; a CGA is a contract between you and one charity at the charity's rates.
• No 10% remainder test. CGAs are exempt from the CRT 10% remainder requirement — charities simply adopt ACGA rates, which are engineered to leave ~50% for the charity at expected life.
• Minimum gift. Most charities require $10,000–$25,000 minimum; for UHNW donors, $250,000–$1M+ gifts are common.
• Age requirement. Most charities require the oldest annuitant to be at least 55 (some require 60+).

2026 ACGA Suggested Maximum Rates

The American Council on Gift Annuities published rates effective January 1, 2024 and reconfirmed them through November 2025 (and again in April 2026).¹ The rates below are the ACGA-suggested maximums for single-life contracts. Two-life rates are lower because payments last until the second annuitant dies.

Source: ACGA, acga-web.org. Effective Jan 1, 2024; reconfirmed Apr 2026. Two-life rates shown for equal ages; unequal-age pairs require a quote from the specific charity.

Tax Treatment of CGA Payments

Each annual payment from a cash-funded CGA has two components determined by the IRS exclusion ratio formula:

• Tax-free return of basis. A portion of each payment is a non-taxable return of your investment (the non-deductible portion of the gift). This lasts until the "expected return period" ends (your projected life expectancy under IRS actuarial tables).
• Ordinary income. The balance of each payment is ordinary income, taxed at your marginal rate. After the exclusion period ends, the entire payment becomes ordinary income.

For gifts of appreciated securities, a third component is added: the capital gain allocated to the annuity portion is recognized ratably over your life expectancy (not all at once in year 1). This is a significant advantage over selling the securities outright and paying 23.8% LTCG+NIIT immediately.

CGA vs. CRT: Which Fits Your Situation?

Both instruments provide income for life plus a charitable deduction. The key differences:

For UHNW donors with $500K+ gifts: a CRUT typically offers more flexibility and investment upside. CGAs are ideal for smaller gifts, older donors (80+) who prioritize simplicity, or donors committed to a single charity.

Best Assets to Fund a CGA

• Highly appreciated long-term stock. The capital gain is spread over your life expectancy instead of recognized immediately. Compare: a $500K gift with $100K basis has a $400K gain; at 23.8% LTCG+NIIT, an outright sale triggers $95,200 in year-1 tax. With a CGA, that gain is spread over 15+ years.
• Appreciated mutual fund shares. Same mechanics as stock. Avoid funds where you hold an offsetting position (wash-sale-adjacent risk in IRAs).
• Avoid retirement assets. IRA or 401(k) distributions fund a CGA with after-tax money (the distribution is already ordinary income). There is no capital gain component and the exclusion ratio benefit is limited. Use qualified charitable distributions (QCDs up to $111,000/person in 2026) directly from IRAs instead if you're 70½+.
• Avoid cash if you have appreciated assets. Cash doesn't have a gain to defer, so you lose the capital-gain-spreading benefit. Use appreciated stock; keep the cash in your portfolio.

OBBBA 2026 Charitable Deduction Changes

The One Big Beautiful Bill Act (signed July 2025) made three changes that affect CGA planning for UHNW donors:

1. 35% deduction cap for 37% bracket taxpayers. Previously, a $150,000 deduction saved $55,500 in federal tax (37%). Starting in 2026, it saves at most $52,500 (35%). The 2% difference is meaningful on large gifts.
2. 0.5% AGI floor. The first 0.5% of AGI is non-deductible. At $2M AGI, the floor is $10,000 — most gifts clear this easily.
3. Permanent 60% AGI ceiling for cash gifts. Previously scheduled to revert to 50%; OBBBA made 60% permanent. For a CGA funded with cash, the AGI ceiling is 60%; for appreciated property, it remains 30% (with 5-year carryforward for both).³

State Licensing Requirements

CGAs are regulated at the state level — not all charities can issue CGAs in every state. Most states require the issuing charity to register, post reserves, and sometimes hold a certificate of authority. A few states (including California) have stringent reserve requirements. If you are a California resident, verify that the charity is registered to issue CGAs in California before proceeding. Your estate planning attorney can confirm.

CGA Coordination in a UHNW Estate Plan

For most $30M+ families, the CGA is a modest tool by itself — $500K is rounding error in a $30M portfolio. The value is in how it fits the broader plan:

• Use a CGA for mid-size gifts ($250K–$2M) to a favorite charity where you want income, not administrative complexity.
• Use a CRUT or CLAT for larger gifts where you want investment flexibility, multiple charities, or the ability to replace corpus.
• Use a DAF for discretionary, multi-charity giving without an income stream.
• Use a private foundation when you want control, family governance, and multi-generational philanthropy at scale.
• Coordinate CGA income with IRMAA brackets — the ordinary income component of CGA payments counts in MAGI for IRMAA purposes. A $500K CGA at age 70 adds $20,000/year of ordinary income. If you're near a tier boundary, adjust timing or amount.

At $30M+, the real value of working with a fee-only UHNW advisor is coordinating decisions like this across tax, estate, and investment simultaneously. A CGA decision that makes sense in isolation can trigger an IRMAA tier increase or reduce the efficiency of your charitable bunching strategy.