What is a Charitable Gift Annuity (CGA)? A Charitable Gift Annuity (CGA) is a planned gift. A Charitable Gift Annuity is a contract under which a 501(c)3 nonprofit organization, in return for a transfer of cash, marketable securities or other property, agrees to pay a fixed sum of money each year (payments) for the lifetime of one or more donors. The person who receives the payments (the donor from the charity) is called the annuitant or beneficiary. The annual payments, called the annuity, are fixed and unchanged for the term of the contract, which is the life, or joint lives, of the donor(s). For tax purposes, the annuity payments are not entirely income, because a portion of each payment is considered to be a partial tax-free return of the donor's gift, which is spread proportionately over the payments expected to be made over the life expectancy of the annuitant.  The remaining portion of the annual payments are considered ordinary income. The donation, given irrevocably, becomes part of the charity's assets, and the payments are a general obligation of the charity.  The annuity is backed by the charity's entire assets, not just by the property contributed. Why is the Metamor model a better transaction for me as a nonprofit organization? The Metamor Model uses a commercial income annuity to support a charity's CGA program.  The support of a commercial annuity enables the charity to: Free up immediate cash when the gift is made, as a commercial annuity costs 20-30% less than the corpus donation. Promise secured payments backed by a highly rated life insurance carrier. Receive a 'Legacy Refund' upon the future death of the donor(s), equal to the difference between the premium paid to fund the annuity and the payments made to the donor by the charity over his lifetime. Alleviate the risk of mismanagement, market fluctuation or underwater status for the charity.  The life insurance company assumes the investment actuarial risk, and they are experts in this arena. Avoid management fees! Why is the Metamor model a better transaction for donors to our organization? CGA's serve as socially conscious gifting opportunities for donors, creating a lifetime financial benefit stream for the life, or joint lives, of one or two donors. CGA donations carry a significant deduction in the year the gift is made. CGA payments are received by the donor with a portion of the annual proceeds being tax free, and a portion subject to ordinary income tax liability. CGA donations allow donors to create a legacy of service beyond their death. CGA's allow for future financial planning as well, with deferred, or retirement gift annuities available in some States. CGA's, in the Metamor model, are secured, worry free investments. Is this simply a reinsurance policy? No - not in the least.  In fact, the State of New York defines reinsurance in NY Ins. Law Sections 107 and 114 as follows:   Reinsurance is a transfer by a licensed or accredited insurance company of its obligations and/or risks under any insurance contract to another licensed or accredited insurance (or reinsurance) company.  Only a licensed insurer or reinsurer may assume a periodic payment obligation by assumption reinsurance.  As it is a contract between the two insurance companies, reinsurance is not an annuity contract or policy.   While a charity is indeed transferring the risk of making CGA payments to the donor in our model, they are doing so through the purchase of a true commercial income annuity.  In as much, they own the annuity contract, using the donor as the measuring life.  Furthermore, a true commercial annuity carries levels of protection that a reinsurance contract simply does not.   This was a key factor in securing IRS support of the Private Letter Rulings.  Do not be fooled by pundits who want to paint the Metamor Model as a reinsurance product, as it clearly is not.  What are the fees associated with Metamor’s business model? There are absolutely no fees associated with our program. Our commission is paid entirely by the life insurance company we place donation proceeds with. Every life insurance company pays the same commission, so there is no incentive for Metamor to place proceeds with one carrier over another. This is a significant additional advantage to issuing charities, compared with the typical 25 basis points per quarter, that most charities are currently paying to managers who are underperforming and placing undue stress and burden upon development staff as a result. I don’t have a dedicated planned giving staff person – is that necessary? There is no need to have a dedicated planned giving staff member in order to take advantage of this development tool. In fact, while our business model can assist any development operation, it was designed specifically to assist small to medium sized charities who are in need of a boost to their development revenues. We have all of the appropriate planned giving software, nationwide insurance licensing and errors and omissions liability coverage necessary to assist your fundraising efforts and help turn interested prospects into valuable donors. How long does it take Metamor to provide me with annuity pricing? Typically, Metamor can provide you with annuity pricing and detailed contracts for donor signature within an hour