Category: Donations
The Pros and Cons of Charitable Gift Annuities
In past articles, weve discussed the pros and cons of private foundations and donor advised funds, but there are other options that can help people support their favorite charity while also providing income for themselves as well. One option is a charitable gift annuity, which is essentially a contract between a donor and a charity. As the donor, youd make a sizable gift to charity using cash, securities or possibly other assets, and in return, you become eligible to take a partial tax deduction for your donation, plus you receive a fixed stream of income from the charity for the rest of your life. When you make a donation to a single charity, the gift is set aside in a reserve account and invested. Based on your age when you make the gift, or ages if its both you and your spouse, youd receive a fixed monthly or quarterly payout for the rest of your life. Then, at the end of your life (again, as well as your spouses, if youre giving as a couple), the charity receives the remainder of
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