Today we continue the series on taxes and charitable giving with a look at charitable gift annuities. These are fascinating options that allows you to get a fixed payment for life in the form of an annuity. And it has tax advantages.
Charitable Gift Annuities
Many non-profits offer these options in charitable giving. Contact the charity of your choice to see if the gift annuity is available. Then, what you will do, is donate assets (such as stocks, bonds, real estate or cash) to the charity. The charity invests it and then provides you with regular and fixed payments. The charity keeps part of the money, and you get some of it back. You get to deduct part of it from your taxes, and part of the payments you receive regularly go untaxed, since you are simply getting some of your own money back.
Make sure that you check the rules for gift annuities in your state, however. Some state require permits, as well as reserve funds. The states with the most exacting standards are Wisconsin, Washington, New York, North Dakota, Alabama, California, Arkansas, Hawaii, New Jersey, Florida and Maryland.
You can find out more about charitable giving and gift annuities by visiting the American Council on Gift Annuities Web site.