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.
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.
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.
a portion of the annuity is a gift, you'll receive an income tax deduction for
- A portion of the annual annuity income is exempt from federal
- You may save tax on the capital gains (profit from an investment).
- You avoid estate taxes and probate costs.
- The organization will
have immediate use of some of the funds you pay them for your annuity.
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; once you have parted with your money pursuant
to the annuity contract, you cannot get it back.
return to Charitable Gift Annuities or to the Glossary.
For more information or a confidential discussion of your charitable options, please email or call the Vice President and Chief Advancement Officer, Joanne Bean, at 207-893-7891.
Please note, individual financial circumstances
will vary. The information on this site does not constitute legal or tax advice, either in whole or in part. Donor stories and photographs are for purposes of illustration
only. As with all tax and estate planning, please consult your attorney
or estate specialist. All material is copyrighted and is for viewing purposes
only. Use of this site signifies your agreement with the terms
of use. The content in this Legacy Giving section has been developed
for Saint Joseph's College by Future
Focus. Please report any problems to section webmaster.