Charitable Gift Annuity

What Does Charitable Gift Annuity Mean?

A charitable gift annuity is an annuity in which the annuitant donates a portion of the funds to a charity. In return for this contribution, they receive tax benefits and access to annuity payments, often for the remainder of their life.

Annuities, including charitable gift annuities, are commonly offered by life insurance companies.

Insuranceopedia Explains Charitable Gift Annuity

Charitable gift annuities provide three key benefits: supporting charitable causes, receiving tax breaks, and generating a fixed income. However, for these benefits to be significant, the charitable donation must also be substantial.

These types of annuities can serve as valuable income streams for charities.