Charitable Gift Annuity

Charitable Gift Annuity

Learn more about how MetLife can help manage the risks with your CGA program.

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.

Download Our Slipsheet


Yes, all the gifts provide an opportunity to reinsure.

You should develop charitable gift annuity risk management policies that answer the following questions:

  • Is limiting risk important to our management of a CGA program?
  • When will we try to reduce risk and which strategies will we employ?
  • At what level should we consider reinsuring a part of the gift?
  • At what level would we cross our risk tolerance threshold and reinsure the gift?
  • Is lowering long-run costs important to our organization?

Clearly, every organization will have different answers to these questions, but it is important to view charitable gift annuity gift acceptance beyond minimum ages and minimum gift sizes.

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. We 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). We 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.

No. Your donors will still avail themselves of all the tax advantages associated with making a donation to your organization.