Charitable Gift Annuity

Make a gift, receive payments for life

A gift annuity can be established with a modest contribution and provides many attractive benefits. You can:

• Fund it with cash or marketable securities.
• Qualify for an immediate income tax charitable deduction for the gift (subject to certain income limitations).
• Potentially spread out any capital gains tax liability.

What’s more, part of your annuity payment may be free of federal income tax for a certain number of years. As a donor, you can select the payment intervals (usually quarterly or annually) and name the annuitant(s)—one or two persons. The amount of the annuity is based on the gift amount and age of the annuitant(s) at the time of the gift.

Those who frequently max out their annual retirement plan contributions may want to consider a deferred gift annuity strategy. Deferred gift annuities start payments at least one year after creation and offer three important benefits:

1. They can be used to supplement qualified retirement plan savings.
2. You qualify for a current income tax deduction now during your high-income years.
3. You can postpone the start of annuity payments until later—usually after retirement begins.

Now is a great time to consider this giving option as gift annuity rates are the highest, they’ve been in years.

Sample one-life gift annuity rates, effective 1/1/24, reconfirmed 1/1/25

For more information about charitable gift annuities contact us.