Charitable Gift Annuities / Deferred Gift Annuity Agreement
Would you like to guarantee income for life while at the same time providing for your favorite charity?
A gift annuity is an irrevocable contract between you, as the donor, and the charity. In exchange for your contribution, the charity will make guaranteed payments as indicated in your agreement to the named annuitant or annuitants for life. The right to receive annuity payments cannot be changed to any person or entity (other than the charity).
What is different about a Charitable Gift Annuity?
Establishing a gift annuity with the charity is not, and should not be regarded as, an investment. Instead, it is a way to receive payments while also making a charitable contribution. As a result, a gift annuity is different than purchasing a commercial annuity.
How does a Charitable Gift Annuity work?
As a donor you will receive a charitable deduction for the year the annuity is created. The amount of the charitable gift is determined by the age of the annuitant, the annuity rate, and the principal amount. A portion of the annual income received is considered a non-taxable return of your investment. If the annuity is funded with appreciated securities, the gain is not taxable in the year of the donation but will be reported as part of the annuity received over the lifetime of the beneficiary. Upon the death of the last beneficiary (for example, you and your spouse) the assets will be used to support the charity.