This Week's Topic: Charitable Gift Annuities

I recently attended a course in Seattle given by the American Council on Gift Annuities, a nonprofit educational group based in Indianapolis. A gift annuity is a simple contract between a donor and a charitable organization such as a church, university, hospital, museum that provides for a fixed amount of money being paid to the donor for her or his lifetime. If there is any money left over, it stays with the charitable organization.

The Internal Revenue Code allows the donor/annuitant to receive a charitable contribution deduction for the transaction, usually around 30% to 50% of the amount contributed, depending on the donor