Charitable Gift Annuity
How It Works
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.