Goal: Receive guaranteed fixed income that is partially tax-free
Benefit: Current and future savings on income taxes, plus fixed, stable payments
One of the simplest and most popular charitable gifts is a charitable gift annuity. This gift option is a combination of an investment and a gift and provides life income to the donor (and another recipient if desired - the annuitants). The designated charity accepts the gift and in return obligates itself to pay a fixed and specified dollar amount to the annuitant(s) for life.
A charitable gift annuity immediately becomes the property of the charity and is an irrevocable gift. The charity is legally bound to fulfill its commitment to pay the annuitant(s) for life. Some states have regulations regarding the issuance of charitable gift annuities. Please contact us regarding any questions.
There are two types of charitable gift annuities - immediate and deferred. An immediate annuity begins paying income immediately after the annuity agreement is signed. A deferred charitable gift annuity begins the income payments at a specified date in the future. A deferred charitable gift annuity will generally provide a larger charitable deduction than the immediate annuity and, as the funds will have an opportunity to grow without income distributions for a period of years, the income rate will generally be larger.
Gift Annuity Benefits
As a portion of the annuity is a gift, you'll receive an income tax deduction for the gift if you itemize.