Programs

Many people chose the NCF Charitable Installment Purchase (ChIP) or the Charitable Gift Annuity (CGA) to supplement their retirement income, fund long-term care, or establish an asset replacement program for their heirs.

Click on the tabs below to discover the features and benefits of each program.

Charitable Gift Annuity (CGA)1

Charitable Gift Annuities, as described in IRSCode§501 (m)(5), provide a guaranteed, tax-favored, fixed income for the rest of your life and, if you desire, the life of a loved one2. Charitable Gift Annuities can also provide a substantial income tax deduction and if the annuity is funded with a capital asset, a portion of the capital gain tax is eliminated3.

A variety of assets can be used to fund a CGA including real estate, securities (stocks, bonds and mutual funds), annuities and CD/cash.

Features & Benefits

  • Fixed lifetime income for one or two individuals
    Payments may be immediate or deferred
  • Immediate income tax deduction
    Income tax deduction may be used in current year with a 5 year carry-forward, if needed
  • Elimination of a portion of capital gain tax
    The balance is amortized throughout life expectancy
  • Reduction or elimination of federal estate tax
  • No market risk
  • Reinsurance4
  • No set-up fees, legal fees, or annual tax filings
  • Supports charitable causes worldwide

1NCF programs are not available in every state. Consult your financial advisor or contact NCF for more information about state availability.

2Not FDIC insured or insured by any federal or state government agency

3NCF does not provide legal or tax advice

4See reinsurance for more information

*This is educational information and is not intended to be legal or tax advice. Individuals should seek tax, legal or financial advice from an independent professional advisor.

Charitable Installment Purchase (ChIP)1

Through NCF’s Charitable Installment Purchase (ChIP) program2, individuals can transfer a variety of assets to NCF and receive installment payments for a specified number of years3. In addition, individuals will receive an immediate income tax deduction and capital gain reduction for appreciated assets while reducing applicable estate tax liability4.

A variety of assets can be used to fund a ChIP including real estate, securities (stocks, bonds and mutual funds) and annuities.

Features & Benefits

  • Fixed installment payments for a specified number of years
    Payments may be immediate or deferred. If death occurs before the end of the specified period, the remaining payments can be made to designated beneficiaries
  • Immediate income tax deduction
    Income tax deduction may be used in current year with a five year carry-forward, if needed
  • Elimination of a portion of capital gain tax5
  • Reduction or elimination of federal estate tax
  • No market risk
  • Reinsurance6
  • No set-up fees, legal fees, or annual tax filings
  • Supports charitable causes worldwide

1NCF programs are not available in every state. Consult NCF’s State Compliance Chart to determine availability

2IRS Code §453 and 26 CFR §1.1011-2

3Not FDIC insured or insured by any federal or state government agency

4NCF does not provide legal or tax advice

5When transferring publicly traded securities, remainder of gain must be recognized in year of sale

6See reinsurance for more information

*This is educational information and is not intended to be legal or tax advice. Individuals should seek tax, legal or financial advice from an independent professional advisor.