Strengthening your Charitable Gift Annuity (CGA) Program
Charitable gift annuity "reinsurance" is a way of transferring certain risks associated with your CGA program to an insurance company. It can also alleviate the administrative burdens of running a gift annuity program and reassure donors about the security of their lifetime payments.
Donor tax deduction is based on the difference between the gift amount and the value of the annuity.
Immediate use of CGA donations
When a non-profit organization reinsures a gift, they obtain the immediate use of the difference between the remaining value of the gift and the cost of the annuity, without having to worry about providing a payment stream to the donor.
Security and Certainty
Investment, longevity and concentration risks are reduced, eliminating the need to draw on other revenues or unrestricted dollars in order to meet donor obligations.
Renewed focus on your primary mission
The transfer of risk to the insurance company requires less of your organization’s resources to maintain the program and increases capacity for additional CGAs, giving you more time to focus on your primary mission.
The organization purchases a single premium immediate annuity, as an asset, to provide a guaranteed source of funds to the charity. If so desired, a reinsured annuity can make the annuity payment directly to the donor.
Products & Services
MetLife Charitable Gift Annuity (CGA) Solution
Provides the opportunity to add security and certainty to your CGA program by reducing your risks, minimizing costs and guaranteeing donor payments. Some of the product highlights are:
A complimentary evaluation of the annuities in your CGA portfolio to help you assess which annuities you may wish to "reinsure" and the associated financial impact.
We use institutional pricing to generate rates that are generally better than retail annuities.
MetLife makes annuity payments to donors (if so desired) and relieves your organization of the investment resources needed to administer the program.
Yes. It is very common for a charity to reinsure a portion, or all of their gift annuities depending on the charity's specific needs, and self-insure their remaining CGAs. MetLife can also work with your charity to reinsure a portion of large gift.
Most states allow a reserve reduction for the annuities that have been reinsured (subject to certain state-specific requirements). MetLife can make the annuity payments directly to the charity or the donor, depending on your preference. This results in a reduction of time for the charity to administer (fix) a vastly reduced time commitment on the part of the charity.