Charitable Gift Annuities: Security for You, Hope for the Future
Create an income for life and a legacy that supports research, patient care, and education at Barrow.
In an unpredictable economy, a Charitable Gift Annuity (CGA) offers a rare combination of stability and impact. The concept of a gift annuity is simple: You donate assets to Barrow Neurological Foundation, and we invest them. You will receive a fixed-income payment each year and continue to receive that payment for life. What remains of your gift after your lifetime becomes a permanent legacy, funding the next generation of treatments for Alzheimer’s, Parkinson’s, ALS, brain cancer, epilepsy, TBI, multiple sclerosis, stroke, spine disorders, and more.
The 2026 “IRS” Advantage
Under the SECURE Act 2.0 and IRS Notice 2025-67, 2026 introduces a powerful new opportunity for donors aged 70½ or older.
- The One-Time Move: You can now make a one-time Qualified Charitable Distribution (QCD) of up to $55,000 directly from your IRA to fund a CGA.
- The Benefit: This counts towards your Required Minimum Distribution (RMD) but does not increase your taxable income. You essentially trade a taxable RMD for a life-long income stream while supporting neuroscience.
CGA vs. Traditional Fixed Income (e.g., CDs)
A CGA is not just a financial investment; it is a philanthropic partnership.
| Feature | Bank CD | Charitable Gift Annuity (CGA) |
| Payout Rate | Market Dependent | Age-Based (ACGA Suggested Rates) |
| Tax Treatment | Fully Taxable | Partially Tax-Free |
| Income Tax Deduction | None | Immediate Deduction for Gift Portion |
Immediate vs. Deferred Annuities
- Immediate CGA: Payments begin right away. This is ideal for those currently in retirement seeking to supplement their cash flow.
- Deferred CGA: You make the gift now (receiving an immediate tax deduction) but choose to start payments later (e.g., age 75). This results in a significantly higher payout rate and is an excellent strategy for younger donors planning for future needs.
Frequently Asked Questions
How are the annuity rates determined?
Barrow follows the rates suggested by the American Council on Gift Annuities (ACGA). These rates are based on your age at the time of the gift; the older you are, the higher your rate.
Is my income guaranteed?
Yes. Your payments are a general obligation of the Barrow Neurological Foundation and are backed by our total assets.
Can I fund a CGA with stock?
Yes. Funding with appreciated stock allows you to avoid a portion of the capital gains tax and spread the remaining tax out over your life expectancy.
What is the 2026 inflation-adjusted limit for a QCD-to-CGA transfer?
For the 2026 tax year, the one-time limit for transferring funds from an IRA to a Charitable Gift Annuity has increased to $55,000 per person. This is an inflation-indexed adjustment from the original $50,000 limit established by the SECURE Act 2.0. If you are married, both you and your spouse can contribute up to $55,000 from your respective IRAs to a single or separate CGA, totaling $110,000 in tax-free impact.
How is the income from my gift annuity taxed?
One of the primary advantages of a CGA is that a portion of the annual income you receive is considered a tax-free return of principal for a specified number of years (based on your life expectancy). The remaining portion is taxed as ordinary income. If you fund your CGA with appreciated stock, a portion of the income may also be taxed at the lower capital gains rate, making a CGA significantly more tax-efficient than a traditional CD or high-yield savings account.
