Charitable Gift Annuity
 |
Definition of 'Charitable Gift Annuity'A type of gift transaction where an individual transfers assets to a charity in exchange for a tax benefit and a lifetime annuity. As with any other lifetime annuity, when the beneficiary dies, the annuity payments are stopped, and the charity retains the remaining funds. In a typical charitable gift annuity, the annuity payouts are not limited to the contributed assets, however the actuarial calculations establishing payout amounts usually provide that a large residual amount should remain for the charity after the beneficiary's death. |
 |
Investopedia explains 'Charitable Gift Annuity'Charitable gift annuities are popular fundraising vehicles. The annuities simultaneously provide a charitable donation, an income tax deduction and a guaranteed lifetime income stream. The charitable donation tax deduction is limited to the amount contributed to the annuity in excess of its present value, as calculated using IRS parameters. |
Related Definitions
Articles Of Interest
-
Deducting Your Donations
Generosity may be its own reward, but some charitable giving also provides personal tax benefits. -
Gifting Your Retirement Assets To Charity
There are several things to consider when it comes to this type of charitable giving. Make sure you're well informed. -
Cut Your Tax Bill With Donor-Advised Funds
Beat the tax man come April 15 by investing in a charity-friendly fund. -
Using Life Insurance To Make Charitable Donations
Your life insurance policy can be a great tool for charitable giving. Find out how. -
It Is Better To Give AND Receive
You give to benefit others, but there can be perks for you too. -
How To Buy Annuities (And When Not To)
Annuities are complicated products that require some basic homework to be done before requesting quotes. Retirees will want to think about how they envisage their lifestyle and even their potential ... -
How To Get The Most Out Of Hiring An Accountant
When you hire an accountant, getting good tax advice going forward is as valuable as – or perhaps even more valuable than - getting the previous year’s taxes filed correctly. Learn what you need ... -
6 Financial Benefits Of Spring Cleaning
This year, combine your spring cleaning strategies with your big-picture financial objectives. -
IRS Special Enrollment Examination (SEE) Study Guide
The enrolled agent status is the highest credential awarded by the IRS. -
How To Deduct Your Job Search Expenses
With approximately 12 million Americans out of a job right now, many people are spending significant dollars to be noticed by potential employers. Fortunately, some of these job-search costs ...
Free Annual Reports
