Mary* is the director of development for a Christian charity. In talking with a local church member, she discovers that he is not completely satisfied with the rate of return on his current investments. He has actively been giving to the charity for years, so Mary asks if he’s every considered a charitable gift annuity. He’s heard of this giving option, but doesn’t understand how it works.

 

Step One

You, the donor, gift cash or other property to the charity.

 

Step Two

You will benefit from an income tax deduction, and the charity pays you a fixed amount based on current rates and other market variables at the outset of the annuity.

 

Step Three

At the end of the gift annuity, the remaining principal is passed on to the charity.

 

*fictional name and character used for illustration purposes