The right moment for a charitable gift annuity

We're in a moment when more Americans are thinking about security, legacy and simplicity at the same time. A charitable gift annuity can check all those boxes. The key is making sure it's presented at the right inflection point, aligned with the donor’s purpose and bringing a compelling story with it.

Charitable gift annuities have been around for more than a century, but they are often left unused. And it's not because they're ineffective, but because they're usually introduced too early or too late, or the introduction falls flat.

In my experience working across the wealth and protection space, the most impactful CGA conversations start when the focus shifts from a transaction to a meaningful part of a larger plan for the donor.

Timing with purpose: Life events that open the door

There are windows in a person's financial journey when the appeal of a CGA is naturally heightened. Retirement is a clear example, but it's not just about hitting a certain age. When someone sells a business, receives an inheritance or starts serious estate planning, they're likely already thinking long-term and looking for both stability and impact. These are key opportunities to bring a CGA into the discussion.

One couple I worked with had just finalized the sale of their small company and were looking for a way to generate stable income while making a meaningful charitable gift. A CGA helped them create that stream, receive a tax deduction and feel like their next chapter had real purpose, not just liquidity.

We're also seeing CGAs gain greater traction in periods of market volatility. A fixed income stream looks a lot more appealing when someone is staring down unpredictable returns. The guaranteed nature of CGA payments can serve as both a financial anchor and a values-aligned decision.

Recognizing these key life moments allows you to introduce the strategy naturally while showing clients you truly understand what drives their decisions.

Where CGAs fit in honest client conversations

It's rare for a client to ask for a CGA by name. That makes it our job to know when a CGA might be a fit and how to describe it in ways that feel relevant.

One of the best openings I've seen involves a simple question: "Have you ever thought about giving in a way that gives back to you, too?"

That line tends to shift the conversation. It invites curiosity and creates space to explain what a CGA does without leading with jargon.

At its core, a CGA allows a donor to make a one-time gift to a charity and receive fixed payments for life. The older the donor, the higher the rate. In 2025, those rates have hovered between 6.3% and 9.1% for donors in their 70s and 80s. A portion of the gift is tax-deductible and part of the annuity income may be tax-free for several years. For the right donor, it's a clean solution with measurable financial and philanthropic value.

One recent client conversation illustrates how this plays out in practice. The donor was in her late 70s, financially comfortable but looking to simplify her estate while continuing to support causes close to her. She didn't need more market exposure or complex planning; she needed consistent income and peace of mind. A CGA checked both boxes. It allowed her to make a meaningful gift, receive a reliable income and reduce her taxable estate — all in a single move.

Communication that builds confidence

The structure of a CGA isn't complicated, but it can sound unfamiliar or intimidating to someone who hasn't heard of it. That's why we need to lead with clarity and confidence.

Clients may worry about giving up control or locking in a decision too early. But with the proper framing — and a clear breakdown of the financial and charitable outcomes — those concerns can be addressed. The conversation shifts from "What am I giving up?" to "What am I building toward?"

I believe the most powerful CGA conversations come when the solution is tied directly to something your client has already said, such as "I'm worried about income," "I want to do something meaningful" or "I don't want my money just sitting." That's where a CGA naturally fits.

Strategy aligned with today's market

We're in a different giving environment than we were only a few years ago. Charitable gift annuity payout rates remain at multi-decade highs, even as federal interest rates start to taper in 2025. That timing opens a valuable window for donors to secure attractive, guaranteed income. At the same time, clients are adjusting to tax law changes, evolving retirement rules and a growing preference for simpler, more transparent giving strategies.

In one recent planning session, a client wanted to move part of her required minimum distribution into something "useful but not risky." After talking through a CGA, she realized she could generate lifetime income, lower her taxable income and direct a meaningful gift to her alma mater all at once. Her goal wasn't to chase returns. Instead, she wanted her assets to reflect her values and intentions.

That kind of alignment is what makes CGAs so uniquely valuable. They help clients act with intention, not just obligation.

Closing the gap between intent and action

According to recent philanthropic research, only 38% of high-net-worth donors say they plan to include charitable gifts in their estate, and just over half of those have taken steps to formalize their wishes. These gaps highlight a clear need for guidance; an opportunity for financial professionals to offer practical solutions that turn charitable intent into structured action.

A CGA isn't for everybody. But for those who are seeking predictability, tax efficiency and a value-driven plan, it's often a better fit than they realize. The key is giving clients the time, space, and clarity to see how a CGA works for them.

Leading with intentionality

CGAs sit at the intersection of giving and planning, two things more clients are talking about than ever before. When you bring the right solution at the right time, you can guide a decision that can carry long-term meaning.

There's no single script for the perfect CGA conversation. But when you align your guidance with your client's timing and goals, the conversation becomes easier, and the impact lasts longer.

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Chris Seats is the president of V2 Marketing, an AmeriLife company. Contact him at [email protected].