What is a Charitable Gift Annuity?
One of the most time-honored ways to contribute to your charity of choice is a Charitable Gift Annuity. While gift annuities have been available for over a hundred years, there are now many creative options for structuring gift annuities based on your individual needs and desires. Thousands of people have a passionate concern for their favorite charities, yet recognize that they need future income. Some need income for life and others are looking for short-term income until other retirement resources become available. The charitable gift annuity offers a unique opportunity to serve each of these goals simultaneously. At the present time, annuitants earn incomes between 2.6% and 9.5%, depending on their age. Considering fixed income earning options offered commercially, the gift annuity offers a very attractive rate of return.
How It Works
In exchange for your gift of assets, the charitable organization of your choice agrees by contract to pay a fixed amount for each year to one or two beneficiaries for life. The fixed annual income is backed by the resources of the charitable organization. The charitable gift annuity rate of return is set by the American Council on Gift Annuities and depends on the ages of the annuitants and the value of assets donated. When you establish a charitable gift annuity, you are entitled to a current income tax deduction for a portion of the value of the assets given to fund the charitable gift annuity.
This May Appeal to You If…
You want to make a charitable gift and you:
- Want to receive a safe, fixed income annually for life
- Want to reduce your current income taxes with an income tax charitable deduction