GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

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76% - Very Often

Charitable Gift Annuity


Synonyms:charitable remainder annuity trust, income stream
Acronyms &
abbreviations:
CGA
Relevant locations:Canada
Notes:A form of planned giving.
Filed Under: annuities, financial-banking, investments, taxation
Tags: annuity, investment
 

Definition of charitable gift annuity (CGA)

charitable gift annuity (CGA)
1. A planned giving vehicle where a donor agrees to transfer property or a sum of cash to a registered charity as a gift in exchange for a tax deduction and a lifetime stream of income from the charity in the form of an annuity. When the donor dies, the charity keeps the remaining funds. Also known as a "charitable remainder annuity trust."

Related Terms and Acronyms:

  • gift from a family member   A gift of cash, to a mortgage applicant from a relative by blood or marriage, which the applicant is not required to repay. In some instances it is necessary to provide a written statement to that repayment is not required.
  • marital deduction   For estate tax and gift tax purposes, a deduction that allows you to transfer assets to your spouse tax-free.
  • private annuity   An arrangement where one party agrees to transfer ownership of an asset to another party (usually a beneficiary) in exchange for lifetime payments.
  • tax deferred annuity (TDA)   A type of annuity where taxes are deferred until the annuitant decides to withdraw money from the annuity.
      ➥  More commonly known as a Tax Sheltered Annuity (TSA).

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