What is the tax deduction for a charitable gift annuity?

You get an immediate charitable tax deduction in the year of your gift, usually between 25% and 55% of the amount you transfer to charity. With a cash donation, your annuity income typically will be part ordinary income and part tax-free return of principal.

What are the advantages of charitable gift annuity?

A charitable gift annuity allows you to eliminate capital gains tax when you donate long-term appreciated assets, including non-income-producing property. By donating assets in-kind, you will preserve the full fair market value of the assets, rather than reduce it by selling it and paying capital gains taxes.

Is a charitable gift annuity irrevocable?

A charitable gift annuity (CGA) is a contract under which a 501(c)(3) qualified public charity, in return for an irrevocable transfer of cash or other property, agrees to pay the annuitant(s) a lifetime income.

How do charitable donations affect your taxes?

Charitable donations of goods and money to qualified organizations can be deducted on your income taxes, lowering your taxable income. Monetary donations can be deducted up to 50% of your taxable income and non-cash donations up to 30%.

What you must know about charitable gift annuities?

Charitable Gift Annuities for Charities CGAs entice hesitant donors to make a donation because they will receive something in return. Gift annuities promote long-term relationships with donors. Charities have some flexibility with the donation, such as using the gift immediately or investing the gift and making payments on the annuity from the earnings.

Does a charitable gift annuity make tax sense for You?

A charitable gift annuity may be a good option if you want an immediate charitable deduction but also want to secure a source of lifetime income for yourself and another beneficiary. It is also a good option if you want to eliminate potential capital gains tax and support a charity with a significant donation.

What are charitable gift annuities and what are the benefits?

What is a Charitable Gift Annuity. A charitable gift annuity is an agreement in which an individual transfers assets to a charity in exchange for a lifetime income stream and a tax benefit. As with any other life annuity, when the annuitant dies the annuity payments are stopped.