Charitable Gift Annuity Calculator

Estimate your annual payment, charitable deduction, and after-tax income from a Charitable Gift Annuity — funded with cash or appreciated stock. Uses 2026 ACGA suggested rates (unchanged since January 2024¹) and the May 2026 §7520 rate of 5.0%.²

How a charitable gift annuity works

• You transfer cash or appreciated stock to a qualifying charity irrevocably. The charity issues you an annuity contract — a legal obligation to pay you (and optionally a second annuitant) a fixed dollar amount for life.
• You receive an immediate charitable income tax deduction for the present value of what the charity ultimately keeps — typically 35–65% of the gift amount depending on your age and the §7520 rate.
• Payments are partially tax-free (return of your cost basis), partially ordinary income, and for appreciated-stock gifts, partially long-term capital gain spread over your life expectancy.
• The payout rate is fixed at the time of the gift using ACGA suggested rates. It doesn't change if interest rates drop. For a 70-year-old in 2026, the rate is 6.3% — which, after the partial tax-free exclusion, often exceeds what a CD or bond pays after tax.

2026 ACGA single-life suggested maximum rates

The American Council on Gift Annuities (ACGA) sets suggested maximum payout rates used by most charities. Rates effective January 1, 2024, confirmed unchanged as of April 2026:¹

Deduction percentages above are estimates at the May 2026 §7520 rate of 5.0%. Exact deductions require IRS Table S actuarial calculation. Your charity may pay below (but not above) the ACGA suggested rate.

Why funding with appreciated stock increases the benefit

• When you give appreciated stock (held more than one year), you avoid immediate recognition of the capital gain on the donated portion that goes to charity.
• Instead, the gain is spread over your IRS life expectancy as long-term capital gain income in each annuity payment — taxed at 15%–20% instead of ordinary income rates, and only recognized if you live to receive the payments.
• You still receive the full fair-market-value deduction, even though you never pay capital gains on the donated appreciation.
• Example: $100K of stock with $20K basis and 70-year-old annuitant. Cash alternative: give $100K cash, deduct $42K, payments are ~59% tax-free then ordinary income. Stock alternative: same $42K deduction, $80K of gain avoidance, payments are ~12% tax-free return of basis + ~48% capital gain + ~40% ordinary income. The stock option avoids $80K × 23.8% = $19K of capital gains tax you'd have paid on a sale.

OBBBA (2025) impact on the charitable deduction benefit

• 35% cap: Even if your marginal rate is 37%, you can only reduce federal income tax by 35 cents per dollar of charitable deduction. On a $42,000 deduction, maximum federal tax savings = $42,000 × 35% = $14,700 — not $15,540 at 37%.
• 0.5% AGI floor: Cash charitable deductions only count to the extent they exceed 0.5% of your AGI. On $500K AGI, the first $2,500 of charitable deduction is disallowed. For most HNW donors, this floor is a minor reduction.
• These changes make appreciated-stock CGAs relatively more attractive versus cash — the stock funding also avoids capital gains tax, which isn't subject to the 35% cap.

CGA vs. CRT: choosing the right vehicle

• CGA fits when: Gift is under $250K; you want simplicity (no trustee, no annual tax filing); the charity handles all paperwork; you want guaranteed fixed income regardless of market performance.
• CRT fits when: Gift exceeds $250K–$500K; you want to direct the charitable remainder to multiple charities or a DAF; you prefer variable CRUT income that can grow with markets; or your capital-gains deferral benefit is so large it justifies the additional complexity.
• Both are irrevocable — once funded, you cannot change your mind.

Sources

1. ACGA — Current Gift Annuity Rates. Single-life suggested maximum rates effective January 1, 2024; confirmed unchanged by ACGA board through April 2026 per official ACGA communications.
2. IRS — Section 7520 Interest Rates. May 2026: 5.0% per Rev. Rul. 2026-9. Donors may use the current month or either of the 2 preceding months (Treas. Reg. §1.7520-1(b)(1)).
3. ACGA — SECURE Act 2.0 §307 IRA-to-CGA election. One-time lifetime transfer of up to $55,000 from IRA to fund a CGA; counts toward annual QCD limit ($111,000 in 2026); payments from IRA-funded CGA taxed 100% as ordinary income.
4. IRS Publication 1457 — Actuarial Values Version 4A. Single-life annuity factors (Table S) based on 2010CM mortality tables; used to compute present value of annuity stream and resulting charitable deduction at the §7520 rate.

ACGA rates verified from official ACGA rate schedule. §7520 rate per IRS Rev. Rul. 2026-9. OBBBA provisions per July 2025 legislation. Deduction percentages are estimates based on approximate IRS Table S factors; exact calculations require formal actuarial computation. Values verified May 2026.