Charitable Gift Annuity

Charitable gift annuities allow donors to make tax deductible contributions to a charitable organization. In exchange for the charitable contribution, donors receive a stream of regular, annuity-like payments for their lifetime(s). The gifts are irrevocable, so donors do assume credit risk as charitable organizations can become insolvent. Some charitable organizations will use their own assets to fund the payments to the donor, while others will purchase a commercial annuity to fund the payments. The rates on charitable gift annuities are typically a bit lower than what would be available through a commercial annuity.

Full List of Annuity Types

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Annuity Digest Buying Guide: Comprehensive List of Annuity Types

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New Service May Allow Charitable Organizations to Outsource Gift Annuity Administration

A new service may provide charitable organizations with greater access to gift annuities. The administrative aspects of charitable gift annuities can be a burden and obstacle for many smaller not for profit organizations. A Cambridge-based consulting firm is in discussions with a large non-profit to provide nationwide administrative services for gift annuities. Source: Full Story

Alleged Ponzi Scheme Could Impact Charitable Gift Annuity Market

Robert Dillie allegedly operated a fraudulent foundation from 1996 to 2001. The foundation involved a ponzi scheme that issued $55 million in gift annuities to over 400 donors. As a result of the case, the Federal Court of Appeals has concluded that gift annuities are investment contracts under federal securities laws. The Court's conclusion will likely have a meaningful impact on the marketing activities of charitable foundations that are actively promoting gift annuities. Source: On...

Charitable Gift Annuities Impacted by Financial Crisis

The financial crisis has begun to have an impact on something known as a charitable gift annuity or simply gift annuity. Tax deductible gifts to charitable organizations can be made in exchange for the promise of guaranteed, annuity-like payments from the charity to the donor. Some charities purchase insurance policies to fund the promised annuity payments while others simply rely on existing assets and the overall financial health of the organization. Not surprisingly, financial market turmoil...