A charitable
gift annuity provides an immediate payment to the
donor. A gift annuity provides three benefits to the person
making the gift:
a fixed annuity payment based on the
age of the income beneficiary, most typically the donor,
at the time of the gift;
a charitable tax-deduction in the year
of the gift; and tax-free income on a portion
of the annuity payment.
A charitable gift annuity is appropriate for donors aged
65 and older. The approximate charitable tax deduction ranges
from 37% of the gift at age 65 to approximately 50% of the
gift at age 80.
