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Charitable Gift Annuity
A gift annuity is an agreement between you and us. When a charitable gift annuity is in place, we agree to pay you fixed payments for your life (and/or the life of your chosen beneficiary). The amount of the annuity is based on the gift amount and the age of the annuitant(s) at the time of the gift.
A gift annuity provides a number of very attractive benefits:
- A gift annuity can be established with a modest contribution of $5,000 or more.
- You can fund it with cash or marketable securities.
- You can receive an immediate income tax charitable deduction for the gift (subject to AGI limitations), and
- Potentially spread out any capital gains tax liability.
What's more, part of your annuity payment will be federal income tax-free for a certain number of years. As a donor, you can select the payment intervals (usually quarterly) and name the annuitant(s)—one or two persons.
Professionals and other highly compensated employees who frequently "max out" their annual retirement plan contributions because of restrictive rules and regulations may want to consider a deferred gift annuity strategy. Deferred gift annuities offer three important benefits:
- They can be used to supplement qualified retirement plan savings.
- You receive a current income tax deduction now during your high income years.
- You can postpone the start of annuity payments until later—usually after retirement begins.
