Charitable Gift Annuity
How It Works
- You transfer cash or securities to Planned Parenthood Federation of America, Inc.
- Planned Parenthood pays you or one other beneficiary you name fixed payments for life.
- The remaining balance is released when the contract ends at the death of the last beneficiary.
- Beneficiaries must be at least 70 at the time of the gift.
- Our minimum gift requirement is $10,000.
- PPFA no longer offers charitable gift annuities to residents of Alabama or Tennessee.
- Receive dependable, fixed payments for life in return for your gift.
- Qualify for an immediate federal income tax charitable deduction for a portion of your gift.
- A portion of your annuity payment will be tax-free during your deemed life expectancy.
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Please contact us so that we can assist you through every step of the process.
Questions and Answers
A gift annuity contract becomes a legal financial obligation of our charity and is backed up by all our assets.
Both have distinct advantages. A gift of cash will produce a larger tax-free portion of the annuity. A gift of stock can increase your income because of reduced capital gains cost. Either asset results in the same payment rate and charitable income tax deduction.
A charitable gift annuity can only be set up for one or two lives. This can be children, a husband and wife, siblings, or friends. Beneficiaries must be at least 70 at the time of the gift.
A commercial annuity, typically sold by banks and life insurance companies, will provide the owner with fixed or variable income based on commercial rates of return. These plans establish their annuity payments based on the assumption that all of the assets in the plan will be used up by the end of the income beneficiaries' lives.
A charitable gift annuity is both an annuity and a charitable gift. The donor receives a partial income tax deduction based on the assumed value of the remainder the charity will ultimately receive. A charitable gift annuity establishes its payments on the assumption that there will be a gift remaining at the end of the contract.
Yes, you can make a gift now for an annuity contract that will defer your payments to a future date that you decide, typically sometime in the future when you will need the income.
Planned Parenthood Federation of America, Inc.
Office of Gift Planning
123 William Street, 10th Floor
New York, NY 10038