| Charitable Gift
Annuities 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. CSUB participates in
the California State University systemwide annuity program. The obligation to
pay the fixed return is made by the CSU system, not just CSUB. 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 BenefitsAs a portion
of the annuity is a gift, you'll receive an income tax deduction for the gift
if you itemize. - A portion of the annual annuity income
is exempt from Federal taxes.
- You may save tax on the capital
gain (profit from an investment).
- You avoid estate taxes,
probate, and costs on the amount involved.
- The charity will
have the use of the funds after the beneficiary's lifetime.
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The payments are fixed and will not fluctuate with interest rates.
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Your annuity is as safe as the organization you invest with, for the total assets
of the organization stand behind their agreement to make payments to you.
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Generally the funds used to set up a charitable gift annuity may be structured
as an unrestricted gift or to fund a particular item or program that is important
to you (with the consent of the charity).
Return to
the Charitable Gift Annuities story or to the glossary. | 
