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Charitable Gift Annuity Trust

A charitable gift annuity trust is a contract between a charity and a donor. Donors receive tax benefits, income, and a legacy gift that is donated after the annuitant’s passing.

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What Is A Charitable Gift Annuity Trust?

A charitable gift annuity trust is a contract between a charity and a donor where, in exchange for an irrevocable transfer of assets to the charity, the donor receives:

  • An immediate income tax charitable deduction for a portion of the gifted assets
  • A fixed stream of income for the lifetime of up to two annuitants (the donor and/or beneficiaries designated by the donor)
  • A legacy gift donated to the charity upon the passing of the annuitants

We’re happy to help you determine if a charitable gift annuity is right for you.

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How a Charitable Gift Annuity Works For you

The benefits include reduced tax costs, operational simplicity, and leaving a charitable legacy.

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Reduced Tax Costs

Contributing assets to a charitable gift annuity qualifies the donor for an income tax charitable deduction of a portion of the original gift for the year the annuity is established.

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Simplicity

Annuity payments made to annuitants are fixed and do not fluctuate or become adjusted for inflation. These payments are guaranteed to continue for the lives of the annuitants, and as obligations of the charity, they are backed by the charity’s assets.

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Charitable Impact & Legacy

Assets contributed to the charity that issues the charitable gift annuity are immediately available for use by the charity in furthering their charitable mission. Upon the death of the last annuitant, the charity’s obligation to make annuity payments ceases.

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You Want To Avoid Capital Gains Tax

When donors contribute assets to a charity through a charitable gift annuity, capital gains taxes are avoided.

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You Want A Steady Income

Charitable gift annuities offer a steady stream of income for the donor or their heirs.

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You’re Interested In An Income Tax Deduction

 A deduction is applied to the year when the charitable gift annuity is established.

Ideal Donor Profile

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Donors With Appreciated Assets

One of the most compelling reasons donors choose a charitable gift annuity is its ability to reduce, or even completely bypass, the capital gains tax liability that applies if appreciated assets (such as stocks or real estate) are sold outright.

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Donors Seeking Steady Income

A charitable gift annuity offers a reliable income stream for you and your loved ones while also supporting a cause you care about.

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Donors Seeking A Tax Deduction

If you’re planning ahead for tax season, a charitable gift annuity offers an income tax charitable deduction during the same year the gift is made.

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