Scott Thomas, ChFC®, CAP®, CKA®, RICP®

3 Myths Regarding Reinsured Charitable Gift Annuities

 

First let me remind you that your mission is not to be financial services company unless you’re a Community Foundation in which case that maybe the key driver for your income model.

 

Myth #1 costly to nonprofit.  It could be very costly if you simply wished to go and get reinsurance on current book of charitable gift annuities or you wanted to get a quote on your nonprofit’s financials.  Why? CGA is based on unrestricted cash only and what other liabilities could go against those “unrestricted dollars”. Most nonprofits would be facing large premiums for reinsured as …well financials are weak at best.  There is a way around this high cost we will share.

 

Myth #2 complex and time consuming.  Could be if you were to attempt to reinsure every annuity contract and the time it takes to individually get quotes, get applications processed, wait for issue and monitor each contract.  I am suggesting something different you likely have never considered in having a very strong and very large public charity partner with you to provide inexpensive and efficient handling of your CGA and reinsurance as well. If you had $4 billion+ of unrestricted cash and essentially no liabilities then the cost and handling of reinsurance would be easy and effective.

 

Myth #3 Not a benefit to donors. I love to teach on this very subject and how making a donor centric and donor driven approach to philanthropic giving makes donors happier and more generous.  Donors want to help their favorite charities but also demand accountable and wise money management. A promise to pay the donor for their lifetime or possibly the next 30 years is huge commitment by donor and nonprofit. Creating certainty with A+ insurance carrier fully backing payments and power house foundation with 20 years + track record is smart partnering for nonprofits. Donors love to see impact today as money can be freed up today to provide a major gift today not 30 years in the future. 

 

What you next step? Reach out to me, Scott Thomas, Chartered Advisor in Philanthropy and experience consultant to guide you in exploring your best path. We will send you free link to your mobile and desk top application that takes the guess work out of what the impact to your charity would be today.





 

Check the background of this financial professional on FINRA's BrokerCheck
Check the background of this financial professional on FINRA's BrokerCheck