Charitable Gift Annuities
The charitable gift annuity is a simple contract between the donor and the charity. It gives a donor the opportunity to make a charitable gift and secure a stream of income for life. Under this arrangement, donors transfer assets (usually cash or securities) to the charity in exchange for a commitment by the charity to pay them (and a second annuitant, if the donor so chooses) a fixed and guaranteed payment for the remainder of their lifetime(s). The total annual payment, which can be paid monthly, quarterly, semiannually, or annually, does not change. On the death of the annuitant(s), the remaining principal is retained by the charity to carry out the donor's charitable intentions.
SUMMARY FOR CHARITABLE GIFT ANNUITY:
Document that creates: Annuity contract
Ultimate beneficiary? To benefit charities of choice
Lifetime beneficiary? Donor and/or other
Annual benefit: Fixed