Charitable Gift Annuities
In these arrangements, the present value of the future annuity payments is less than the present value of the property transferred to the charity. This difference produces a current federal income and gift tax deduction. In addition, the value of the property is removed from the donor's taxable estate thereby producing estate tax savings.
Charitable gift annuities are appropriate for individuals with a charitable motivation, who have more property than they can use or manage, but who have a need for a reliable income stream for the remainder of their lives. Charitable gift annuities may be funded with cash, appreciated securities, land, rental property, or, in some cases, the donor's principal residence. Organizations seeking charitable gift annuities must meet certain legal requirements in each state in which it solicits this type of gift.
©2008 Ronnie C. McClure, PhD, CPA