Catching Up - CGAs
As an adult, she confesses she took a hiatus from tithing. "I was married to a farmer and raising a family in Opelousas. A farmer's income just isn't dependable, and we probably gave more time than money to the church," she claimed.
Fast forward to present day, and she's doing a good job catching up.
"Looking back on my life, I felt like I owed the church," she says. Wanting to give back, she thought about different methods of giving.
She considered making a charitable gift through her will, but was concerned that it might appear to her children that she was taking something from them. So Dorothy and her advisors had a better idea.
"I established a charitable gift annuity, so the gift is set up before I die instead of after." The income rate on the annuity was far better than she could earn by investing it in stocks or bonds, and it allows her to support the Louisiana Methodist Children's Home, the beneficiary of her gift, forever.
The process of setting up a charitable gift annuity was easy, and it will pay her an attractive rate of income-partly tax-free. After Dorothy is gone, the gift becomes an endowment at the Foundation, and income from that endowment will benefit the Louisiana Methodist Children's Home.
Dorothy liked the idea so much she set up two more charitable gift annuities the following year. "I'm making these gifts, but I feel like I'm the one benefitting," she said.