The Charitable Gift Annuity

Did you know that you can make a gift to charity that also pays you income? Through a Charitable Gift Annuity, you enter into a contract with a ministry by giving cash, securities, or other assets. You receive a tax deduction for the gift portion of your transfer and a fixed stream of income for life.

A Charitable Gift Annuity is created when the ministry receives your gift and invests it. Based on your age at the time of transfer, you receive a fixed payout for life. At the end of your life (and your spouse’s if you established your annuity as a couple), the ministry receives the remainder.

If you fund a Charitable Gift Annuity with appreciated assets, your annuity payment will be based on the full fair market value of the donated property. Some of the capital gain that would be taxable if you sold the asset is avoided. You receive a charitable deduction for the gift portion, and favorable tax treatment of your income.

Want to Learn More?

If you have a maturing CD or appreciated securities that are not producing the income you need, let us show you how you can make a gift and receive lifetime income. Click the link below for our special planning report, A Guide to Charitable Gift Annuities. It explains how this giving agreement could work for you. As always, we are happy to help and answer questions without cost or obligation.

© 2019 CDF Capital Foundation

From the Lifestyle Giving Legacy Files