The charitable gift annuity is a simple contract between a donor and a charitable organization. In exchange for the donor’s gift, the charitable organization promises to pay the donor fixed payments for life. Annuity amounts are based on life expectancy and prevailing interest rates. At the end of the donor’s life, assets remaining in the annuity become a gift to the charitable organization.
Charitable gift annuities provide donors a dependable source of income, one that doesn’t fluctuate with changing investment markets. Because Legacy Deo is organized as a 501(c)(3), amounts contributed are tax deductible by the donor to the extent allowed by law. A portion of the fixed payment is a non-taxable return of principal, which provides another tax benefit to the donor. These features make charitable gift annuities an excellent tool when planning for income taxes and retirement income.
Since charitable gift annuities are tied to life expectancy, the minimum age to establish one with us is 78. The minimum gift amount is $25,000.