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 do I list the beneficiaries of my life insurance policies if I have a trust?
Because most states protect life insurance policies from creditors, most buyer questions come from the confusion created with ownership and beneficiary designations because of tax treatment. ... -
Calculating The Present And Future Value Of Annuities
At some point in your life, you may have had to make a series of fixed payments over a period of time - such as rent or car payments - or have received a series of payments over a period of time, ... -
New Tax Rules Target The Top Tax Bracket
The American Taxpayer Relief Act brings about new tax rules for the wealthy that people such as Warren Buffett have been calling for over the last few years. -
The Financial Fallout Of The DOMA Repeal For Same-Sex Couples
The recent Supreme Court decision to repeal the Defense of Marriage Act has paved the way for same-sex couples to enjoy the same federal benefits as opposite-sex couples. -
3 Financial Tasks We Think Are Harder Than They Really Are
Use these three tips to help put your financial situation into perspective. It turns out, organizing your finances isn't nearly as hard as you thought.
Free Annual Reports