CHARITABLE GIFT ANNUITY

A Charitable Gift Annuity is an agreement between a donor and charity through which a person can make a charitable gift and receive a fixed rate income for life at the same time. Annuity rates are attractive and can be based on one life or two and the income stream can start immediately or may be deferred. Tax advantages include a charitable contribution income tax deduction in the year the annuity agreement is made (usually about half of the gift amount) and for the duration of your life, a portion of each annuity payment is tax-free. The rate table is set by the American Council on Gift Annuities and is used by most charitable organizations. The rates may be negotiable.