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.

• As a portion of the annuity is a gift, you will receive an income tax deduction for the gift.
• 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 death taxes, probate, and costs on the amount involved.
• Your annuity is as safe as the organization you invest with, for the total assets of the organization stand behind its agreement to make payments to you.

NOTE: The gift annuity is irrevocable, so once you have parted with your money pursuant to the annuity contract, you can't get it back if you need it.

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