Charitable Gift Annuities
Make a Gift, Receive Payments for Life
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 age of the annuitant(s) at the time of the gift.
A gift annuity can be established with a contribution and provides a number of very attractive benefits. You can:
- Fund it with cash or marketable securities ($25,000 minimum value in cash or securities to establish your charitable gift annuity)
- Qualify for an immediate income tax charitable deduction for the gift (subject to certain income limitations), and
- Potentially spread out any capital gains tax liability.
What's more, part of your annuity payment may 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 qualify for 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.
Now is a great time to consider this giving option as gift annuity rates increased on January 1, 2023.
Sample one-life gift annuity rates effective January 1, 2023