Life Income Gifts
Charitable Gift Annuities
Charitable Gift Annuities are our most popular planned gift. Gift annuities are safe and easy to arrange. Also, your income rate is locked in at the date of your gift. Annuities may be funded with cash or appreciated securities and may be set up to provide life income for you and/or another beneficiary.
Benefits of a charitable gift annuity include:
- Guaranteed fixed income for life
- Part of your income is tax-free
- An immediate income tax deduction
- Partial avoidance of capital gain tax if funded with appreciated securities
Example:
If you were to donate $10,000 of appreciated securities, with a cost basis of $4,000, at age 75, to establish a charitable gift annuity, you would:
- Receive $630 a year, for life (6.3% annuity rate)
- Be able to take an immediate income tax deduction of more than $4,500
- Avoid capital gain tax on almost $2,700 of the appreciation
- Receive part of your annuity tax-free for your actuarial life expectancy
- This example uses rates effective February 1, 2009
- Receive a higher annuity rate by deferring payments with a deferred gift annuity
Every gift is unique. Your benefits will vary with the timing of your gift.
This information is for informational purposes only. Earthjustice is not in a position to offer financial or estate planning advice. We recommend reviewing any gift plan with your personal advisors.