Charitable Gift Annuity: How It Works
You make a gift
- Complete a simple standardized contract
- Make an irrevocable gift by transferring cash or appreciated securities to the gift annuity administrator (NOT the church)
- Gift annuities are guaranteed by the issuer of the annuity. They are not government insured and are not usually insured by an insurance company.
You get a fixed income
& potential tax benefits
A) a fixed income for life. Income rate determined by the number of annuitants (1 or 2) and their age(s).
B) a potential charitable tax deduction for a part of the original gift.*
C) potential favorable tax treatment of part of the annuity income.*
* Dependent upon several factors. Please request your own personalized sample proposal with your own specific details and benefits to share with your tax/financial/legal advisor.
Your Church receives the remainder
After your lifetime the remaining amount of the annuity is distributed in a lump sum to your church. The church’s use of these funds can be restricted or unrestricted.
Thank you for considering a charitable gift for your church.
Please consult with your financial and/or legal advisor.