Charitable Gift Annuity: How It Works

diagram2

1

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.

2

You get a fixed income
& potential tax benefits

You receive:

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.

3

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.