Charitable gift annuity

A charitable gift annuity is a type of planned giving under which the donor makes an asset transfer to a charity, after which the charity has an obligation to make a fixed series of payments back to the donor for the rest of his or her life. The donor also gains a partial tax deduction on the donation, based on the residual amount of the gift that the charity will receive. At the end of the donor’s life, the charity receives the residual amount of the gift. The amounts transferred to charities under these arrangements tend to be quite large, so they are considered an essential fundraising tool for larger non-profit entities.

Related Courses

Nonprofit Accounting