Sam and Barbara were both 75 years old, retired, and troubled by the drop in their income as a result of lower interest rates on their fixed-income investments (CDs, bonds and money market funds).

Still, they wanted to support charities through financial giving and planned to do so through their will. Then they learned about a CGA with SFCF.

Sam and Barbara started a CGA by funding it with a $25,000 check. They received an immediate tax deduction for a portion of the funding amount, and based on their age and life expectancy, they received fixed periodic payments of $1,575 per year for life (6.3% of $25,000).

About 65% of each payment was tax-free. Even better, their CGA worked in tandem with their SFCF Giving Fund. Money from the CGA went into their Fund, from which they could recommend gifts to their church and favorite charities— even after their death.