Charitable Gift Annuity
A charitable gift annuity is a simple, contractual agreement between a donor and Baton Rouge General Foundation in which the donor transfers assets in exchange for the Foundation paying one or two annuitants payments for life.
This type of trust is most often used when the donor’s primary goal is to receive a fixed income annually for life. The payments usually begin immediately, but can be deferred to a later date. The donor will also receive an income tax deduction for the year in which you make the gift. Income received is taxed as ordinary income.
Understanding Annuity Rates
Annuity rates are based on life expectancy. As a result, gift annuity contracts are generally more appealing to older donors because the purchasing power of a fixed dollar return can shrink over any long period, even with modest inflation.
Rates are also adjusted according to the number of annuitants, with rates for two-life contracts often lower due to the extended life expectancy. The age of an annuitant is the age reached at the nearest birthday when the contract is made, and rates are the same for men and women.
Whether you are creating a will or updating an old document, Baton Rouge General Foundation recommends that you seek the advice of estate and tax professionals, such as attorneys, accountants, or financial advisors, in developing your estate plan. Baton Rouge General Foundation cannot render tax or legal advice. For more information, please contact Baton Rouge General’s Foundation at Foundation@BRGeneral.org or (225) 763-4372.