Charitable Gift Annuity
Definition - What does Charitable Gift Annuity mean?
A charitable gift annuity is an annuity in which the annuitant gives a certain portion of the money to charity. As a result of this donation, they receive tax benefits and gain access to annuity payments, often for the rest of their life.
Annuities, including charitable gift annuities, are commonly offered by life insurance companies.
Insuranceopedia explains Charitable Gift Annuity
Charitable gift annuities yield three benefits: helping the world, getting tax breaks, and generating fixed income. However, for the benefits to be substantial, the charitable donation must also be very sizable.
These types of annuities can be very beneficial income streams for charities.