Q: Gifts That Pay You: Charitable Gift Annuities

A: Gifts That Pay You: Charitable Gift Annuities

The oldest and best known of charitable gifts that pay donors for life is the charitable gift annuity described here. The charitable gift annuity allows you to make a gift to a good cause while giving you a current income tax deduction and payments for life. In this way, some donors discover they can make a far more generous future gift to the Cypress Lawn Heritage Foundation than they thought possible.

A gift annuity is simple to create. You fund your annuity with a gift of cash or stock. You are then paid a guaranteed fixed amount monthly, quarterly, semiannually or annually for life. You must be at least 60 when the payments begin and your annuity must be created with gifts having a total value of at least $10,000.

Your gift annuity can provide payments for one or two lives. Both plans generate an immediate charitable tax deduction and partially bypass capital gains tax. In addition, part of your payment will be tax-free and all of your gift will pass to the Cypress Lawn Heritage Foundation free of estate tax.